Boost for China growth engine stokes up FTSE

* FTSE up 0.2 percent

* Miners firmer as China retains robust growth

* Banks shrug off Greek debt concern

* U.S. retail data eyed

By David Brett

LONDON, June 14 (Reuters) - Britain's top share index rose on Tuesday, as data from China boosted optimism that action to curb soaring inflation in the world's fastest-growing economy would not come at the cost of growth.

Integrated oils <.FTNMX0530> and miners <.FTNMX1770>, in tandem with rising commodity prices, and banks drove most of the gains on London's blue-chip index.

Some risk appetite returned after Chinese reports showed industrial production and retail sales posting solid growth, despite inflation accelerating to 5.5 percent. [ID:nL3E7HE05P]

That prompted the People's Bank of China to raise banks' required reserves by 50 basis points.

"Today's data ... gave assurance to people that the economy wasn't experiencing a hard landing (while) at the same time China was still tightening," said Andrew Bell, chief executive of the 1.1 billion pound ($1.8 billion) Witan Investment Trust.

Bell is a "watchful bull" who believes some of the negative factors -- interest rate rises in emerging economies, Japan's earthquake, rising oil prices -- are reaching their expiry date.

Britain's FTSE 100 <.FTSE> was up 13.97 points, or 0.2 percent, at 5,787.43 by 1057 GMT, adding to a 0.1 percent gain on Monday.

Concerns remain on inflation in Britain, which held at a two-and-a-half-year high in May. [ID:nLDE75D0RM]

U.S. stock index futures pointed to a bounce at the open on Wall Street, as investors awaited the Producer Price Index, retail sales and business inventory data.

BANKS BOUNCE

Financial stocks were higher despite Standard & Poor's rating agency downgrading Greece to triple C on Monday, the lowest level of any country in the world. [ID:nN13126859]

"The FTSE seems to be shrugging off concerns with regard to sovereign debt. The market has fairly well factored in that Greece is in a very difficult situation," Manoj Ladwa, senior trader at ETX Capital, said

Barclays led banks higher, up 1.9 percent and extending Monday's rebound.

Schroders topped Britain's FTSE 100 leaderboard, up more than 3 percent, boosted by HSBC lifting its rating on the investment manager to "overweight" on valuation grounds.

ITV , whose shares are down 4.2 percent in 2011 on advertising spend worries, climbed 2.5 percent as Liberum Capital argued the broadcaster's price could advance more than 10 percent from this point.

Weir and IMI rose 1 and 2.2 percent respectively as JP Morgan said business conditions remained favourable, with current lead indicators implying capital goods companies were more upbeat than equity market sentiment.

On the downside, commodities trader Glencore fell 3 percent after its first trading update as a listed entity. [ID:nLDE75C0JN]

In its update, Glencore refuted speculation it might bid for Kazakh miner ENRC , whose shares fell 2.4 percent.

British media reports said the general counsel of ENRC had resigned. The company is being dogged by a boardroom row over governance. [ID:nLDE75D00Q]

Imperial Tobacco fell 1.8 percent as Credit Suisse and Natixis cut their respective target prices after its trading statement on Monday, when it warned of problems in Spain.

(Additional reporting by Tricia Wright; Editing by David Hulmes)