* FTSE up 0.9 pct; buoyed by U.S. corp earnings on Tuesday

* Oils firm as crude rises above $60

* Miners surge as metals prices continue rally

* UK unemployment data at 0830 GMT

By David Brett

LONDON, July 15 (Reuters) - Britain's top share index rose
early on Wednesday as energy stocks, miners and banks led a
buoyant blue-chip market driven by strong U.S. corporate
earnings the previous session.

By 0802 GMT, the FTSE 100 index .FTSE was up 39.87 points,
or 0.9 percent, at 4277.55, after closing 0.9 percent higher on
Tuesday.

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).

Analysts, however, cautioned that the outlook remains
difficult as the economy faces severe headwinds.

"Volumes remain pedestrian ... and because of the results in
the U.S. we forget the long-term realities of the economic
difficulties we're still facing in this country," said Howard
Wheeldon, strategist at BGC Partners.

Oil producers added most points to the FTSE 100, as crude
CLc1 crept back above the $60 mark and Nigerian rebels
declared a 60-day cease-fire in its local campaign targeting oil
and gas installations.

Tullow Oil (TLW.L: Quote, Profile, Research) topped the energy stock risers, up 2.5
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) all gained between 0.7 and 1.3 percent.

Traders cheered higher metals prices as investment sentiment
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 2.1 and 4.7 percent.

Rio Tinto (RIO.L: Quote, Profile, Research) lifted 2.4 percent after the company said
iron ore output in the second quarter was up 8 percent on a year
earlier. [ID:nSYD59215]

BANKS EXTEND GAINS

Banks extended Tuesday's gains as the entire sector headed
north. Barclays (BARC.L: Quote, Profile, Research), Lloyds Banking Group (LLOY.L: Quote, Profile, Research), HSBC
(HSBA.L: Quote, Profile, Research), Standard Chartered (STAN.L: Quote, Profile, Research) and Royal Bank of Scotland
(RBS.L: Quote, Profile, Research) put on between 0.3 and 1.5 percent.

Land Securities (LAND.L: Quote, Profile, Research) the UK real estate company moved
3.1 percent higher on news it was preparing for new buys in the
battered UK commercial property market, prompting KBC Peel Hunt
to raise its recommendation to "buy" from "hold". [ID:nL7603207]

RSA Insurance led insurers higher, up 2.7 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),
Old Mutual (OML.L: Quote, Profile, Research) gained between 0.9 and 2.7 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 as it braced itself for a
battle with Britain's pensions regulator over its retirement
plan, the country's biggest private sector pension scheme, which
could add billions of pounds to a shortfall in savings for tens
of thousands of employees and pensioners, the Financial Times
said.

Traders will look to UK unemployment figures, due out at
0830 GMT, for further guidance as to where the market and the
economy might be heading.

Later on Wednesday, the U.S. CPI index will keep the economic
fundamentals on the agenda.

(Editing by Simon Jessop)