* FTSE up 0.7 percent
* Commodities rise as G20 agreement sends dollar lower
* Burberry rallies after LVMH takes stake in Hermes
By David Brett
LONDON, Oct 25 (Reuters) - Commodity stocks lifted Britain's top shares on Monday as the dollar weakened after G20 finance ministers agreed to avoid competitive currency devaluations and ahead of a speech by U.S. Federal Reserve Chairman Ben Bernanke.
By 1054 GMT, the FTSE 100 was up 38.44 points or 0.7 percent at 5,779.81, having closed down 0.3 percent at 5,741.37 in the previous session.
Technical factors also supported FTSE gains, analysts said.
"The positive aspects are that the index remains above its 20-period moving average," Sandy Jadeja, chief technical analyst at City Index, said.
"Longer-term price action suggests that a thrust above 5,833 could take the index towards 6,050-6,097."
The FTSE mining index gained 2.7 percent as copper prices rose to a 27-month high after the dollar suffered another setback following the weekend G20 meeting of finance ministers.
Chilean copper miner Antofagasta was the top FTSE riser, up 4.3 percent, helped by an upgrade from Goldman Sachs, which raised its rating to "buy" from "neutral".
Oil majors also traded higher along with crude, which rose over 1 percent. BP added 0.7 percent and Royal Dutch Shell climbed 0.5 percent.
U.S. stock index futures pointed to a higher open on Wall Street as investors awaited comments from Bernanke at 1230 GMT that could shed light on the Fed's monetary easing move.
"For those investors prepared to take slightly more of a risk chasing yields (with interest rates remaining low), equities seem the asset class of choice," said Richard Hunter, head of equities at Hargreaves Lansdown.
LUXURY GOODS
Burberry rose 3.6 percent as investors speculated that LVMH's purchase of a minority stake in handbag maker Hermes may spark bid interest in the luxury goods sector.
"Midcap luxury stocks such as Bulgari, Burberry or Tod's could benefit from LVMH's move, as it might signal renewed M&A activity in the sector," Citi analysts said in a note.
Frankfurt stock market operator Deutsche Boerse and the London Stock Exchange advanced 0.9 and 5.2 percent, respectively, after Singapore Exchange's A$8.4 billion ($8.23 billion) takeover bid for ASX Ltd signalled industry consolidation may heat up again.
InterContinental Hotel Group, the world's top hotelier, rose 1.6 percent after a bullish third-quarter update from their American operations.
Banks, however, lagged the wider market rally, weighed down mainly by Lloyds Banking Group, which fell 3 percent after Credit Suisse cut its target price for the British state-backed bank.
Credit Suisse said in a research note that falling property prices could have a negative impact on Lloyds and that prospects for near-term capital return from the bank are limited.
Pearson fell 1.1 percent. The publishing group raised its full-year outlook again, saying it now expected adjusted earnings per share to be up 10 percent due to growth in its U.S. College and Financial Times units.
Numis, which kept its bullish stance on Pearson, said in a note that "directionally the update is as expected".
Invensys shed 1.4 percent as UBS cuts its rating to "neutral" from "buy" in a sector review. (Editing by Michael Shields)