STOCKS NEWS EUROPE-Miners outperform helped by upgrades

Share in miners outperform a dull blue chip market supported by broker comment, led by BHP Billiton (BLT.L) and Rio Tinto (RIO.L), up 1.7 and 1.4 percent respectively as Investec ups ratings for both to "buy" from "hold".

In a sector review, Investec points out that the miners are undergoing a correction, which it expects to continue in the near term, and it says recent share price weakness is providing some buying opportunities.

However, Investec adds, despite the pockets of value, it is hesitant to call the bottom for some firms, including the platinum producers and Anglo American (AAL.L), which is heavily leveraged to a very strong South African rand.

Citigroup also publishes a mining sector review, which sees its global commodities team upgrading commodity price forecasts.

The broker says it continues to forecast a short term pull back in prices as restocking in China comes to an end and imports slow. But further out the outlook for 2010 and beyond is improving and it expects higher prices in 2010/11.

Citigroup upgrades its ratings for Antofagasta (ANTO.L) and Vedanta Resources (VED.L) to "hold " from "sell", and raises First Quantum Minerals FQM.TO to "buy" from "hold".

Citigroup says its top pick from the UK majors is Rio Tinto.

Antofagasta gains 0.4 percent, First Quantum is untraded, while Vedanta Resources sheds 1.7 percent with the stock trading ex-dividend on Wednesday.

Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net