* FTSE 100 index jumps 1.3 percent
* Commodity stocks gain as metal, oil prices rally
* Vodafone higher on Verizon read-across, SFR hopes
By Jon Hopkins
LONDON, Jan 26 (Reuters) - Britain's FTSE 100 share index held firm at midday on Wednesday, boosted by commodity shares, which were up on the back of higher metal and oil prices, and gains from market heavyweight Vodafone.
At 1140 GMT the FTSE 100 was up 79.45 points at 5,997.16, recovering after a 0.4 percent fall on Tuesday following news of a 0.5 percent drop in Britain's GDP in the last three months.
Miners were the strongest sector on Wednesday, led by Rio Tinto up 2.9 percent, as commodity prices gained on improved confidence in a brightening global economic outlook.
Metal and crude prices were up earlier after U.S. President Barack Obama proposed cutting corporate tax rates in his annual State of the Union address on Tuesday night.
"It's onwards and upwards again after the GDP blip, with equities underpinned by a return of risk appetite after an overnight recovery on Wall Street ahead of the Obama speech," said David Morrison, market strategist at GFT Global.
Integrated oils also saw good gains, with BG Group the top FTSE 100 performer, up 3.9 percent after the energy group confirmed it had discovered a light oil accumulation in the Carioca area, offshore Brazil.
BP missed out on the energy sector's gains, however, losing 0.9 percent with traders citing the impact of rating downgrades from both Societe Generale and Collins Stewart.
"Capable crisis management reflected in recent strong outperformance - which we use to downgrade to 'hold' on valuation grounds," SocGen said in a note.
VODAFONE BOOSTED
Mobile phone heavyweight Vodafone also lent its considerable strength to the blue chip index, gaining 2 percent after good results from its U.S. wireless joint venture with Verizon Communications.
Vodafone was also helped by news Vivendi has completed the sale of its stake in NBC Universal, clearing the way for the French group to begin talks with Vodafone to acquire its 44 percent stake in French telecoms operator SFR.
There were few blue chip fallers at midday, with ex-dividend factors accounting for the top two casualties - Compass Group and Scottish & Southern Energy.
There was little stock market reaction to news that Bank of England policymaker Martin Weale unexpectedly joined Andrew Sentance in voting for a quarter-point rate interest rise this month, according to minutes from the BoE's January Monetary Policy Committee meeting. Investors were awaiting the outcome of the latest two-day Federal Reserve Open Market Committee meeting, due after the London close at 1915 GMT on Wednesday.
Ahead of that announcement, U.S. December new home sales data are scheduled for release at 1500 GMT. (Editing by Greg Mahlich)