* FTSE 100 up 1.1 percent
* Commodity stocks gain on weaker dollar
* Banks gain as euro zone debt fears ebb
By Simon Falush
LONDON, Nov 18 (Reuters) - Miners and energy stocks powered a rise on Britain's top share index on Thursday as a falling dollar lifted commodity prices, while banks rose as fears of another euro zone debt crisis receded somewhat.
The sharpest movers were SABMiller on the upside and Capita on the down, after they reported sharply contrasting fortunes.
By 0854 GMT, the FTSE 100 was up 61.21 points, or 1.1 percent, at 5,753.77 after it gained 0.2 percent on Wednesday.
Miners provided the most support to the blue-chip index as metal prices firmed as the dollar's seven-week rally stalled after subdued U.S. inflation data reinforced the Federal Reserve's case for easing. Rio Tinto gained 2.5 percent, while Lonmin was up 1.9 percent.
Ireland agreed on Wednesday to work with a European Union-IMF mission on urgent steps to shore up its shattered banking sector, a process that could lead to a bailout despite Dublin's deep reluctance.
That boosted banks, as the spectre of further financial sector turmoil had dented them earlier this week.
Barclays added 1.4 percent, while HSBC was up 1.5 percent.
"There is confidence that the right mechanisms are in place," said Andrew Bell, chief executive of Witan Investment Trust.
"There isn't the same fear that there was in May and June that Europe might collapse in a heap because of debt problems at the same time that the world economy slips into a double-dip recession."
MIXED CORPORATE BAG
UK corporate data was mixed. Brewer SABMiller was the top gainer, up 4.8 percent after it posted a 16 percent rise in half-year earnings and said it expected trading in most of its key emerging markets to steadily improve.
Outsourcing group Capita topped the list of fallers, slipping 4.7 percent after its trading update, with Execution Noble saying a lack of new contracts would put downward pressure on 2011 top-line expectations.
British Airways climbed 2.3 percent after solid results from Air France-KLM boosted optimism in the sector.
Technical analysts said the index was close to resistance.
"The FTSE100 reversed to close higher during Wednesday's trading session, after successfully achieving the downside target projected by the breach of the downside channel chart pattern projected to be near 5650," Jonah S. Ford analyst at Autochartist said.
"The index is finding renewed support at the lower end of the channel, with near-term technical resistance near 5730."
British October retail sales will be the main economic feature in the morning, with a 0.4 percent monthly increase forecast, after a 0.2 percent decline in September.
British government borrowing numbers for October will also be released at 0930 GMT, while the November CBI industrial trends survey is scheduled for 1100 GMT. (Editing by Will Waterman)