* FTSE 100 up 1.5 pct
* Miners benefit from Credit Suisse upgrade
* Oil sector rises on hope for output deal
* Mid cap Mitie posts record fall on profit warning
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By Alistair Smout and Adela Suliman
LONDON, Sept 19 British shares gained on Monday,
outstripping European peers thanks to a rise in
commodity-related stocks, though mid cap Mitie Group
slumped nearly 30 percent after a profit warning.
The blue chip FTSE 100 index closed at 6,813.55,
up 103.27 points or 1.5 percent, posting its biggest daily rise
in two weeks. Energy and basic materials firms combined to add
30 points to the index.
Mining companies Anglo American, BHP Billiton
, Glencore, and Rio Tinto were all at
the top of the board, up between 3.5 to 6.2 percent, benefiting
from upgrades by Credit Suisse.
Glencore was the top gainer on the index after it was raised
to "outperform", and the bank lifted its target price for the
other three. In all, miners were up 4.3 percent
Oil and gas shares rose 1.7 percent after crude
prices advanced. Venezuela said a deal to stabilise oil markets
could be announced this month, shrugging off U.S. data that
showed the market was well supplied with oil.
Some were sceptical over the prospects for a deal, however.
"I struggle to get too carried away until we get a confirmed
deal. There's been too many false dawns with regards to output
agreements," said Craig Erlam, senior market analyst at broker
"These comments from Venezuela suggest something may be in
the offing but until something concrete happens we can't buy
into it too much."
The FTSE 100 bounced back after posting its second straight
week of losses on Friday, weighed down by a sell-off in banks
after U.S. authorities demanded Germany's Deutsche Bank
pay $14 billion to settle a mortgages case.
Analysts said they expected markets to be volatile ahead of
Wednesday's interest rate decisions from the Bank of Japan and
U.S. Federal Reserve.
"I don't necessarily think (the rise) is an indication of
really strong sentiment - I think markets are more likely to be
a bit up and down before the (central bank) meetings," Jasper
Lawler, market analyst at CMC Markets, said.
While only a handful of FTSE 100 stocks suffered losses, mid
cap Mitie Group plunged 28.9 percent on the FTSE 250
, its biggest daily loss ever, after issuing a profit
The outsourcing firm lowered its full-year operating profit
outlook, citing a reduction in higher-margin project volumes and
spending by clients in the wake of Britain's vote to leave the
(Additional reporting by Kit Rees; Editing by Mark Trevelyan)