Britain's FTSE bounces led by banks, commods

* FTSE 100 jumps 1.3 percent, back above 6,000

* Banks rally; Barclays, HSBC helped by broker comment

* Commodity issues supported by firmer metals, crude prices

By Jon Hopkins

LONDON, Jan 11 (Reuters) - Britain's leading shares pushed higher by midday on Tuesday, regaining the 6,000 level, with banks rallying as euro zone debt worries were shrugged aside, and miners and oils helped by firmer commodity prices.

At 1217 GMT, the FTSE 100 index <.FTSE> was 78.35 points, or 1.3 percent higher at 6,034.65, recovering after having closed lower over the previous three sessions.

"The blue chip rocket has been relit today, having seen the New Year rally fizzle out over the past few sessions, with a combination of bid speculation, broker comment, and hopes for corporate earnings putting the FTSE back into orbit," said Mic Mills, head of electronic trading at ETX Capital.

A rally by banks provided the main fuel for the blue chip index at midday led by Barclays , ahead 4.9 percent, with Societe Generale naming the lender one of its preferred stocks in the European sector which it upgraded to "overweight".

Barclays also saw gains on Monday after a UBS upgrade.

Meanwhile, global banking heavyweight HSBC gained 2.6 percent after Citigroup upgraded it to "buy" from "hold".

Sovereign debt concerns remained in the background, however, with Portuguese Finance Minister Fernando Teixeira dos Santos on Tuesday telling TSF radio there was no plan to seek a bailout from the EU and IMF. [ID:nLSB001031]

Miners saw good gains, with Kazakhmys up 3.7 percent as metal prices rallied, and after aluminium producer Alcoa kicked off the U.S. fourth-quarter earnings season with profits that topped Wall Street forecasts.

Energy issues were in demand too as crude prices rose back towards $90 a barrel, with BP up 2.2 percent.

And oil explorer Cairn Energy took on 4.7 percent as Morgan Stanley resumed coverage with an "overweight" stance.

BROKER COMMENT

Plumbing supplies firm Wolseley was the top blue chip gainer, up 6.8 percent as Citigroup raised its target price to 3,000 pence, up from 2,125 pence.

Broker comment also supported Capita and Serco , both ahead 3 percent, with UBS upgrading its stances on the two outsourcing firms.

ARM Holdings was also a top FTSE 100 riser, up 6.2 percent with traders citing rehashed bid talk.

On the downside, Smith & Nephew was the biggest blue chip faller, down 3.7 percent after Europe's largest maker of replacement knees and hips hit a record high on Monday on a report it received a bid last month from Johnson & Johnson , which was not disclosed.

Investec downgraded its rating for S&N to "hold" from "buy" saying the lack of comment from either company yesterday seems to suggest that a bid isn't pending in the short term.

Capital Shopping Centres (CSC) shed 3.3 percent after stakeholder Simon Property said it will not bid to buy the largest British mall-owner. [ID:nLDE70A08R]

And retailer Marks & Spencer fell 0.8 percent, disappointing investors with its trading update. [ID:nLDE70919U]

Arden Partners analyst Nick Bubb said he was "underwhelmed, but not downhearted" about M&S's numbers, keeping a "buy" rating on the stock. (Editing by Mike Nesbit)