* FTSE 100 up 0.2 pct
* Unease as Fed expected to scale back stimulus
* Miners rally after positive company news
By Tricia Wright
LONDON, Jan 29 Gains from miners on positive
corporate news underpinned Britain's top shares on Wednesday,
though caution remained before a decision by the U.S. Federal
Reserve on whether to continue trimming its bond-buying
Investors have been on edge in the past days as unease about
the pace of Chinese growth and the withdrawal of U.S. monetary
stimulus has spread from emerging market currencies to the
world's big stock markets.
A huge rate hike by Turkey's central bank to defend its
currency sparked a rally in global stocks earlier in the day,
but these gains tailed off as initial strength in the lira faded
and investor attention switched to the conclusion of the Fed's
two-day policy meeting later on Wednesday.
"I think the prospect of the tapering of the Federal
Reserve's massive stimulus programme, clearly in the short term
that's creating nervousness, it's creating volatility," said
Barclays strategist Henk Potts.
"We expect them to announce a further reduction of $10
billion from that programme today, and for that programme to be
finished by the end of the year, (but) continue to believe
that... actually it's a long-term positive for the global
economy and financial markets."
The FTSE 100 was up 11.05 points, or 0.2 percent, at
6,583.38 points by 1213 GMT, well off an intra-day high of
6,645.23. The index had risen 0.3 percent on Tuesday after a
sharp drop of around 4 percent seen in the previous three
sessions as emerging market currencies weakened.
The mining index gained 1.5 percent, helped by
a 6.7 percent jump to the top of the FTSE 100 by Chilean miner
Antofagasta, which posted record full-year copper
production and said its cash costs for this year would be in
line with 2013.
Anglo American, meanwhile, notched a 5 percent rise
after unveiling a better than expected rise in iron ore
production in the fourth quarter.
Technical analysts were bearish on the FTSE 100.
"I wouldn't be entirely surprised if it were to make another
attempt to break further lower given the extent of the (recent)
sell-off," Gain Capital technical analyst Fawad Razaqzadaat
said. "Nevertheless, there is strong support seen around 6,500
which could limit the downside in the near term."