* FTSE 100 up 0.2 percent
* JP Morgan results boost banks
* Miners, oils lose ground
* Defensives gain ground
* Earnings from U.S. firms Google, IBM eyed
By David Brett
LONDON, July 16 (Reuters) - Upbeat results from JP Morgan boosted banks, lifting Britain's top share index into positive territory for a fourth session in mid-session trade on Thursday.
The index was trading in slightly negative territory in early trade but the JP Morgan results lifted the FTSE 100 index 0.2 percent, or 8.53 points, to 4,354.99 by 1110 GMT.
The index closed at a four-week high on Wednesday, and is set for its best weekly performance in two months.
"(JP Morgan results) have given a shot in the arm to the markets," said Richard Hunter, head of equities at Hargreaves Lansdown.
"It's too early to call the earnings season a success, but the early signs are positive as evidenced by a shift to risk taking on both sides of the pond."
Banks were the biggest driver of gains, continuing the bull run from the last couple of sessions following the results from JP Morgan.
HSBC, Barclays and Standard Chartered added between 0.6 and 1.7 percent.
Among other financials, Schroders climbed 2.7 percent, after Citigroup raised the fund firm to "buy" from "sell".
The U.S. will continue to be the main focus on Thursday as second-quarter earnings season continues with Google and IBM both due to report later in the session.
DEMAND SOGGY
However, the overall outlook for the global economy was still looking difficult with a soggy demand outlook dragging metals and crude prices lower, putting pressure on miners and energy stocks.
Mining firms took the most points off the index. Anglo American, BHP Billiton, Kazakhmys and Rio Tinto lost between 0.3 and 2.3 percent.
Oil stocks retreated following Wednesday's rally as crude again softened back below the $61 a barrel a mark.
Energy firms Tullow Oil, Cairn Energy, Royal Dutch Shell, BP and BG Group fell between 0.3 and 2.3 percent.
However, Petrofac moved 4.7 percent higher to lead the FTSE risers, after the company said its Petrofac Emirates unit, in partnership with GS E&C, was awarded a $2.1 billion Abu Dhabi integrated gas development contract.
UK software firm Autonomy was the biggest faller on the index, down 8.6 percent, as analysts said although the firm reported second-quarter revenue which was in line with expectations, it missed a number of top-end estimates, and the market expected more from its outlook.
Risk appetite, while slightly improved, was still fragile leading investors to move into defensive pharmaceutical and tobacco stocks.
AstraZeneca and Shire added 1.1 and 1 percent, respectively, while British American Tobacco gained 1 percent and Imperial Tobacco was up 1.2 percent.
On the economic front, China's growth rate shot up in the second quarter on the back of a surge in state spending and bank lending, boosting hopes the biggest emerging economy will lead the way out of the worst global downturn since the 1930s..
As well as the corporate newsflow, further U.S. economic data is expected later.
The National Association of Home Builders/Wells Fargo Housing Index, which measures U.S. housebuilder sentiment, is due at 1400 GMT, while the Philly Fed index is due out at 1700 GMT.
(Additional reporting by Simon Falush; editing by Simon Jessop)