FTSE up; breaks 5,100 for first time in 12 months

* FTSE up; above 5,100 for first time in 12 months

* Banks, miners strong; Xstrata lifted by RBS upgrade

* U.S. inflation data due out at 1230 GMT

By David Brett

LONDON, Sept 16 (Reuters) - Britain's FTSE 100 <.FTSE> gained 1.4 percent by midday on Wednesday, breaching the 5,100 level for the first time in 12 months, as confidence on the global economy lifted commodity stocks and banks.

At 1124 GMT, the FTSE 100 <.FTSE> index was 71.95 points higher at 5,114.08. The benchmark index closed 0.5 percent points higher on Tuesday, marking its third straight session of gains.

London's blue chips have rallied 20 percent this quarter, on track to post its best such gains since the index was launched in 1984, but was still down around 7 percent from a year ago prior to the collapse of Lehman Brothers.

Banks added most points, fuelled by hopes that the global recession is over and ahead of closely watched U.S. inflation numbers, with August CPI scheduled for release at 1230 GMT.

Barclays , Lloyds Banking Group , Royal Bank of Scotland , and HSBC rose 1.8 to 4 percent.

The European Commission may force Lloyds Banking Group to sell all or part of its key Halifax subsidiary in compensation for the billions of pounds of state aid the group has received, the London Times reported. [ID:nLF261526]

Investors shrugged off data that showed Britain's jobless rate climbed to its highest level in almost 13 years in July. [ID:nLG58714]

"My general feeling is that the market will keep on pushing forward," said Philip Gillett, a trader at IG Index.

He said recent positive comments and some bullish economic data are overriding any fears that the market might be over bought or due a correction.

"Any sign of improvement and we'll continue on an upward trajectory... supporting the bull's view that the pattern will continue," he said

Miners also weighed with support, boosted by firmer metal prices as comments by Federal Reserve chief Ben Bernanke on Tuesday raised hopes for an increase in demand. [ID:nLG700736]

Xstrata , Fresnillo , Eurasian Natural Resources , Rio Tinto , Randgold Resources , and BHP Billiton gained 2.8 to 4.7 percent.

Xstrata was also lifted by an RBS upgrade to "buy" from "hold" with an increased target of 1,050 pence, up from 625.

Oil majors also moved higher as crude prices held above $70 a barrel, with Royal Dutch Shell , BG Group , Cairn Energy , and Tullow Oil up between 1 percent to 2.7 percent.

Tullow Oil was the top FTSE riser, adding 7.5 percent after a report said the company has struck oil offshore Sierra Leone. [ID:nLF436356]

U.S. DATA IN FOCUS

Stock index futures in the U.S. pointed to a higher open on Wall Street on Wednesday, with futures for the S&P 500 up 0.5 percent, Dow Jones futures up 0.5 percent and Nasdaq 100 futures up 0.3 percent, ahead of U.S. CPI data.

At 1230 GMT the latest set of inflation data will be released and are expected to show the overall picture remaining benign as the economy begins to emerge from recession.

Britain's second-biggest clothing retailer Next gained 4.4 percent after it posted a 7 percent rise in first-half profit, at the top end of expectations, although it forecast a tougher second half and a flat full-year outcome. [ID:nLF611447]

Next's firm results boosted other blue chip retailers, with Marks & Spencer and Home Retail Group up 0.9 percent and 3.5 percent, respectively.

Defensive stocks, which tend to underperform as sentiment improves, fell as investors appetite for risk increased, with utilities, tobaccos and food retailers all weak.

Scottish & Southern Energy , National Grid , Imperial Tobacco , and Sainsbury were down, losing 0.2 to 1.1 percent.

Ex-dividend factors took 0.55 points off the blue chip index, with Antofagasta , Cadbury , and Land Securities all losing their payout attractions. ($1=.6079 pounds)