FTSE ends higher on commods after U.S. data

* Commods buoyed by demand optimism after strong U.S. data

* Banks mixed; UK election, Greece woes resurface

* Vodafone down; Verizon CEO cools merger talk

By David Brett

LONDON, April 6 (Reuters) - Britain's top shares closed 0.6 percent higher on Tuesday, lifted by firmer commodities after upbeat U.S. data raised demand expectations, while Vodafone (VOD.L) fell as Verizon merger talk cooled.

The FTSE 100 .FTSE ended up 35.46 points at 5,780.35, having earlier hit a fresh 21-month intra-day peak of 5,790.40. The index climbed 1.2 percent on Thursday and was closed on Friday and Monday for the Easter holiday.

Energy stocks and miners were big gainers following robust U.S. jobs, service sector and housing data which lifted the demand outlook for crude CLc1 and base metals. [ID:nN05117920] [ID:nNLL5FE63U] [ID:nN01126422]

Crude oil surged to its highest level since October 2008 on Monday, with oil giants BG Group (BG.L), BP (BP.L) and Royal Dutch Shell (RDSa.L) adding 1.1 to 2.4 percent.

Miners also rose as copper MCU3 hit a 20-month high above $8,000 a tonne. Xstrata (XTA.L), Kazakhmys (KAZ.L) and Vedanta Resources (VED.L) were among the best off, adding 1.6 to 3 percent.

"The UK market is making up for lost time over the Easter weekend and when the U.S. market leads, the UK plays catch up," said Angus Campbell, head of sales at Capital Spreads.

British insurer Admiral Group (ADML.L) rose 2.6 percent, touching a lifetime high, with sentiment bolstered by recent management visits that have added to a conviction it is well-placed to take market share from its rivals, traders said.

The UK blue chip index gained almost 5 percent in the first quarter of 2010, after rising 22 percent in 2009.

The next resistance level for the FTSE 100 is 5,973, according to Stephen Pope, chief global equity strategist at Cantor Fitzgerald.

UK ELECTION CALLED, BANKS MIXED

The market shrugged off the confirmation of a UK general election on May 6 as well as the lingering debt problems in Greece, whose share benchmark .ATG fell 2.2 percent.

"It wouldn't be an overstatement to say this was roundly ignored by the stock market -- with so many FTSE 100 companies deriving a significant chunk of income from outside the UK, the comings and goings as to who is leading the country do not seem to be a major concern at the moment," said David Jones, chief market strategist at IG Index.

Royal Bank of Scotland (RBS) (RBS.L) rose 0.6 percent, with reports in the Sunday Times and Sunday Telegraph saying U.S. billionaire and Wall Street turnaround expert Wilbur Ross is backing Virgin Money's bid to buy RBS's branch network. [ID:nLDE63305D]

Barclays (BARC.L) and Lloyds Banking Group (LLOY.L) were both 0.5 percent higher, while HSBC (HSBA.L) fell 0.4 percent.

Mobile telecoms heavyweight Vodafone shed 1.4 percent after Verizon Communications (VZ.N) dismissed speculation the company would merge with wireless venture partner Vodafone Group, saying such a deal would offer little benefit. [ID:nN06215754]

With investors' moods buoyed by signs of U.S. economic recovery, defensive stocks, which tend to underperform when the market rallies, peppered the FTSE 100 fallers list.

Imperial Tobacco (IMT.L), drugmaker AstraZeneca (AZN.L) and consumer goods giant Unilever (ULVR.L) fell 0.9 to 1.3 percent.

BAE Systems (BAES.L) lost 1.3 percent with traders pointing to a Goldman Sachs note sent on Monday, which rated the defence company as a "conviction sell", though they noted it was just a reiteration of the broker's existing stance.

British Airways BAY.L shed 2.3 percent ahead its latest traffic figures on Wednesday, which should reveal the impact of the recent strike action on bookings. (Editing by Karen Foster)