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London - Mining stocks and banks helped drive Britain's top share index higher on Wednesday, as doubts about the recovery story were dispelled by strong economic data and easing fears over Egypt.
By 1207 GMT, the FTSE 100 index was up 35.42 points, or 0.6%, at 5 993.24, extending Tuesday's 1.6% rise.
Miners were in demand, occupying nearly all of the top 10 slots on the gainers' list, with copper rising to a record high on Wednesday, spurred by improved prospects for global economic growth and a weaker dollar.
ENRC added 2.2 % after the miner said ferroalloy production rose 5.6% in the fourth quarter as the company's operations in Kazakhstan ran at full available capacity.
The mood was lifted by data on Tuesday showing the US manufacturing sector grew at its fastest pace in nearly seven years.
Domestic data also provided cause for optimism. British construction activity returned to growth in January, helped by better weather and a rise in new business, the monthly Markit/CIPS purchasing managers index showed.
Concerns over the impact of political unrest in Egypt receded after President Hosni Mubarak said he would step down at the end of his term in September.
"Risk appetite has shown a marked improvement since the beginning of the week. The Egypt situation seems to be settling down a bit, and I think that's made investors much more optimistic about the global economic recovery," said Michael Hewson, market analyst at CMC Markets.
US data eyed
January US ADP National Employment data is due at 1315 GMT, which will give a steer on Friday's January US jobs report, with US stock index futures pointing to a flat to lower opening on Wall Street.
Heavyweight banks saw good support on the back of improved investor sentiment, led by Barclays, up 1.8%.
Imperial Tobacco was the star FTSE 100 performer, up 4.5% after the cigarette maker surprised investors with a return to volume growth in the last quarter of 2010, driving its sales higher due to emerging market growth.
"We think this should put a stop to the recent rot in the share price and create a platform for a more balanced ticket of top line delivery in FY11," Investec Securities said in a note.
Peer British American Tobacco added 1.2%.
On the downside, AstraZeneca and TUI Travel fell after going ex-dividend.
And interdealer broker ICAP shed 1.6% after it said the pace of growth in its post-trade unit, an area in which it has invested heavily in recent years, was not yet meeting its medium-term targets.
Numis Securities cut its rating on the stock to "hold" from "add", saying the shares were now fairly valued.
