FTSE gains as metals spur miners

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Economic data which may offer the markets direction include euro zone PPI and fourth-quarter GDP numbers at 10:00 a.m..

METALS BOOST MINERS

All miners rose and together added nearly 12 points to the FTSE 100 as platinum hit a record high while gold traded within sight of its all-time peak. Lonmin added more than 2 percent, Vedanta rose 1.6 percent and BHP Billiton gained 1.7 percent.

Rio Tinto added 1.3 percent after its Chief Executive Tom Albanese said growing Chinese demand for metals should more than offset any problems caused by a slowing of the U.S. economy.

Also, BHP Billiton is talking to sub-underwriting banks on a record $55 billion loan backing its hostile bid for Rio Tinto, banking sources said.

Motor insurer Admiral dropped about 7 percent after it said UK trading conditions were improving very slowly and warned of a tougher year ahead for its price comparison site, but reported a 24 percent jump in 2007 profit, beating forecasts.

Power firm Drax, which runs Britain's biggest coal-fired station, fell 3.6 percent after it reported a 16 percent fall in year profit.

Drax, whose single massive plant in northern England is the country's biggest source of carbon dioxide, reported underlying pre-tax profit of 439 million pounds for 2007, compared with analysts' average forecast of 454 million and down from 524 million in 2006.

(editing by Elizabeth Fullerton)

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