REFILE-FTSE up 0.8 pct; miners, banks, oils favoured

(corrects GMT time in second graph)

* Miners in demand; Fresnillo gains on upgrade

* Banks firmer; BoE interest rate decision awaited

* Oils up; crude off seven-week low

* Defensives weak as risk appetite returns

By David Brett

LONDON, July 9 (Reuters) - Britain's leading share index gained 0.8 percent in midday trade on Thursday with miners, banks and oils rebounding from the previous session's losses.

By 1014 GMT, the FTSE 100 .FTSE index was 32.88 points higher at 4,173.11 after closing down 46.77 points, or 1.1 percent on Wednesday at its lowest close in more than two months.

"We're being driven by what's happening to the oil and mining stocks and it all seems to be inversely correlated to what's happening with the dollar," said GFT Global market strategist David Morrison.

The dollar dipped on Thursday as some risk appetite returned to the forex markets after an International Monetary Fund report late Wednesday said the global economy is slowly starting to pull out of a deep recession. [ID:nL9336579]

Miners were the FTSE's top performers following Wednesday's sell off, encouraged by earnings news from Alcoa (AA.N).

After the U.S. market close, aluminium giant Alcoa reported a smaller-than-expected loss that gave a positive tone to the start of the second-quarter earnings season.

"The corporate earnings season in the U.S. is going to be important and the next two to three weeks could be a see-saw time," said Morrison.

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 3.3 and 5.3 percent.

All of Anglo American's leading institutional shareholders turned down Xstrata's (XTA.L) proposed 140 billion pounds nil-premium merger of equals, The Times reported.