FTSE ends 0.5 percent higher

By Tricia Wright

LONDON (Reuters) - The top share index closed 0.5 percent higher on Thursday, ending a three-day losing streak on the back of gains in miners after reassuring earnings from Alcoa.

The FTSE 100 .FTSE index closed 18.43 points firmer at 4,158.66, having fallen 1.1 percent the previous session to its lowest closing level in more than two months.

However trading was lacklustre with volume reaching just 70 percent of the average of the last 90 trading days and there was little reaction to the Bank of England's decision not to expand its quantitative easing (QE) programme.

The Bank said it would keep interest rates steady at 0.5 percent, as expected, but disappointed expectations it would continue pumping money into the economy until August.

"We're now very much in the situation of wait and see whether the QE measures, the fiscal and monetary measures are starting to take traction," said Richard Hunter, head of UK equities at brokerage Hargreaves Lansdown.

Miners were the FTSE's top performers in the wake of Wednesday's sell off, encouraged by a less-than-expected loss from Alcoa (AA.N).

Anglo American (AAL.L), Vedanta Resources (VED.L), Kazakhmys (KAZ.L), Antofagasta (ANTO.L), Rio Tinto (RIO.L), BHP Billiton (BLT.L) and Xstrata (XTA.L) gained between 0.2 and 5.6 percent.

Silver miner Fresnillo (FRES.L) grabbed the top spot on the FTSE 100 leaderboard, up 10.1 percent after Citigroup upgraded to "buy" from "hold."