* FTSE 100 adds 1.9 pct by midday, touches 2-wk high

* Strong U.S corporate earnings adds support

* Banks and energy firms advance

* U.S CPI eyed later in the session

By Harpreet Bhal

LONDON, July 15 (Reuters) - Britain's top share index rose
to a two-week high by midday on Wednesday as strong U.S
corporate earnings in the previous session helped support
positive sentiment, lifting banks and energy stocks.

By 1050 GMT, the FTSE 100 index .FTSE was up 1.9 percent,
or 79.26 points, at 4316.94, extending gains from Tuesday's
close, up for a third straight day and on track for its best
weekly gain in two months.

Chip maker Intel Corp INTC.L continued the successful
start to the U.S. second-quarter earnings season by releasing
better than expected results, following upbeat figures delivered
by Goldman Sachs (GS.N: Quote, Profile, Research).

"Clients are a bit more optimistic than they were a couple
of weeks ago because the U.S earnings season has started in
earnest," said Micky Mahbubani, sales trader at IG Index.

"What we see is more and more people talking about green
shoots in the economy. The mood is cautiously optimistic," he
said.

Banks added most points to the index, led by a 4.1 percent
gain in Barclays (BARC.L: Quote, Profile, Research). HSBC (HSBA.L: Quote, Profile, Research), Lloyds Banking Group
(LLOY.L: Quote, Profile, Research), Royal Bank of Scotland (RBS.L: Quote, Profile, Research) and Standard Chartered
(STAN.L: Quote, Profile, Research) added between 1.1 and 4 percent.

Energy firms were also in positive territory as crude CLc1
remained above $60 and Nigerian rebels declared a 60-day
cease-fire in their local campaign targeting oil and gas
installations.

Tullow Oil (TLW.L: Quote, Profile, Research) topped the energy stock risers, up 5.5
percent as it announced its Jubilee field phase 1 development
plan had been formally approved by the minister of energy in
Ghana.

Cairn Energy (CNE.L: Quote, Profile, Research), Royal Dutch Shell (RDSa.L: Quote, Profile, Research), BP (BP.L: Quote, Profile, Research)
and BG Group (BG.L: Quote, Profile, Research) gained between 1.2 and 1.8 percent.

Traders cheered higher metals prices as the demand outlook
remained positive, with miners adding to Tuesday's gains.

Fresnillo (FRES.L: Quote, Profile, Research), Kazakhmys (KAZ.L: Quote, Profile, Research), Eurasian Natural
Resources (ENRC.L: Quote, Profile, Research), Lonmin (LMI.L: Quote, Profile, Research) and Xstrata (XTA.L: Quote, Profile, Research) rose
between 2.9 and 5.4 percent.

Rio Tinto (RIO.L: Quote, Profile, Research) lifted 4 percent after the company said
iron ore output in the second quarter was up 8 percent on a year
earlier. [ID:nSYD59215]

UNEMPLOYMENT RISES

British unemployment hit its highest rate since January 2007
in the three months to May, although the number of people
claiming jobless benefit rose by much less than expected last
month, the Office of National Statistics said.

The data showed claimant count unemployment rose by 23,800
in June, much less than analysts' forecasts for a rise of
40,500. Nonetheless, the claimant count rate rose to 4.8
percent, its highest since November 1997.

On a more positive note for the UK economy, Land Securities
(LAND.L: Quote, Profile, Research), the UK real estate company, said it was preparing for
new buys in the battered UK commercial property market. It added
3.6 percent.

RSA Insurance (RSA.L: Quote, Profile, Research) led insurers higher, up 4.1 percent,
with traders citing talk of bid interest from Generali (GASI.MI: Quote, Profile, Research)

Prudential (PRU.L: Quote, Profile, Research), Aviva (AV.L: Quote, Profile, Research), Legal & General (LGEN.L: Quote, Profile, Research)
and Old Mutual (OML.L: Quote, Profile, Research) gained between 0.9 and 4.1 percent.

ICAP (IAP.L: Quote, Profile, Research), the world's largest interdealer broker, fell
1.9 percent, the FTSE's top faller, after going ex-dividend, but
falls were tempered as it posted a 10 percent rise in revenue
for the period between April and June.

BT (BT.L: Quote, Profile, Research) dropped 0.7 percent after the Financial Times said
it was bracing itself for a battle with Britain's pensions
regulator over its retirement plan.

Later on Wednesday, the release of fresh U.S. CPI data will
keep economic fundamentals on the agenda.
(Editing by Simon Jessop)