UK stocks stage recovery on positive U.S. earnings

* FTSE 100 up 0.4 percent

* Miners gain after Alcoa says sees brighter 2013

* Lloyds Banking shines after UBS upgrade

* J Sainsbury drops after trading update

LONDON, Jan 9 (Reuters) - Britain's top shares rose on

Wednesday, boosted by banking stocks and miners as a reassuring

start to the U.S. earnings season boosted investors' appetite

for riskier assets.

The FTSE 100 was up 24.33 points, or 0.4 percent, at

6,077.96 by 0907 GMT, resuming a rally that took it to its

highest closing level since early February 2011 on Friday,

having slipped on Monday and Tuesday of this week.

Miners gained as investors welcomed news that

Alcoa, the largest aluminium producer in the United

States, posted in-line fourth-quarter earnings after the Wall

Street close on Tuesday and offered a positive outlook for 2013.

But it kept a cautious tone as worries linger over a looming

U.S. budget confrontation.

"The comments from Alcoa... put people more into a risk-on

perspective. But if you wanted to buy (the market) on the Alcoa

results it's probably tempting fate somewhat because it's (just)

one set of results," Andy Ash, head of sales at Monument

Securities, said.

"I think a lot of what we are seeing is new year flows, so

retail (investors) putting money into equity funds ...- and you

don't want to fight against that. But that tends to run out in

the third week of January which coincides with (when the

reporting season gets under way in earnest)."

Banks led blue chips higher, with Lloyds

Banking Group the best performer, up 3.3 percent as

traders cited the impact of a UBS upgrade to "buy" from

"neutral" with an increased target price of 60 pence.

"Lloyds' investment strategy is simplest of the UK domestic

banks. The story is defined with the group focused on

execution," UBS said in a note.

"We think Lloyds will deliver rising margins, falling costs

and falling provisions, which will provide a very strong upswing

to profitability and EPS momentum over the next few years."

J Sainsbury suffered early falls, off 2.5 percent

and relinquishing the previous session's advance as it issued a

trading update which prompted Seymour Pierce to cut its rating

on the stock to "reduce".

Britain's No. 3 supermarket met forecasts for underlying

sales in the Christmas quarter, though growth did slow from its

first half in a highly competitive festive market.

"We suspect Sainsbury will struggle to outperform in 2013 as

Tesco continues its fight back and there is some margin

vulnerability as momentum slows," Seymour Pierce said in a note.

Many of Britain's grocers are finding the going tough as

consumers fret over job security and a squeeze on real incomes,

and with the retail market showing minimal growth, store groups

are battling to take market share off each other.

For a graphic showing UK retailers' share price performances

click on: http://link.reuters.com/mat94t

Tesco, which reports on Thursday, shed 0.8 percent.

(Reporting by Tricia Wright; Editing by John Stonestreet)

Source: http://news.yahoo.com/uk-stocks-stage-recovery-positive-u-earnings-091859896--business.html

Mother Jones cars Bacon Number Kate Middleton photos Chi Magazine Kate Middleton Nude Photos glee