* FTSE 100 rises 0.1 percent
* Miners firm; copper rises as dollar retreats after US data
* Banks weak on persistent sovereign debt concerns
By Tricia Wright
LONDON, Sept 28 (Reuters) - Britain's top share index closed slightly higher on Tuesday as stronger mining stocks offset falls from banks still dogged by investor concerns over sovereign debt.
The FTSE 100 closed 5.02 points, or 0.1 percent, higher at 5,578.44 in skittish trading, with the index having dipped as low as 5,506.07.
Miners were in demand, boosted by firmer copper as the dollar fell after unexpectedly weak consumer confidence data from the United States.
Randgold Resources was among the top blue-chip risers, up 2.2 percent, as gold hit a record high.
Concerns about the debt situation in peripheral euro zone countries kept investors wary, but these fears were offset by data showing Britain's recovery is on track and retail sales were stronger than forecast.
Standard & Poor's warned it may cut Ireland's credit rating if the country poured more than 35 billion euros into Anglo Irish Bank.
Risk-sensitive banks exerted downward pressure on the index, with the sector off 0.5 percent.
"The economic data across the western world is so contradictory still," Jim Wood-Smith, head of research at Williams de Broe, said.
"There's not enough bad news to persuade the bulls that the double-dip is going to come, and there's not enough good news to persuade the bears that 2011 is going to be any better, so we're stuck in limbo at the moment."
Britain's economy grew at its fastest pace in nine years in the second quarter of 2010 and first-quarter growth was revised slightly higher, the Office for National Statistics said.
And British retail sales rose much more than expected -- at their fastest pace in over six years -- in September, a survey by the Confederation of British Industry showed.
The Bank of England should start pumping more money into the economy in order to prevent Britain falling into the same kind of slump Japan did in the 1990s, Monetary Policy Committee member Adam Posen said.
WEAK MAN
Sticking with financials, hedge fund firm Man Group was a heavy loser, shedding 2.4 percent to top the blue-chip fallers' list after it said clients had pulled out assets for an eighth straight quarter.
But among mid-caps British mortgage provider Paragon gained 3.6 percent after it said it will resume lending to buy-to-let landlords after securing fresh funds.
Elsewhere, TUI Travel fell 1.3 percent after an update from midcap rival Thomas Cook in which it said it was looking to cut costs and streamline its operations amid continuing uncertainty over economic conditions.
Thomas Cook dropped 6.3 percent.
Software company Sage Group was the top gainer, adding 5.1 percent, with traders citing bid interest from SAP AG.
(Editing by Michael Shields)