Banks, miners lift FTSE; M&S, Next shine

* FTSE 100 up 0.9 percent

* Marks & Spencer, Next gains on firm results * Banks, miners reclaim ground

By Simon Falush

LONDON, Nov 4 (Reuters) - Britain's top share index gained 0.9 percent early on Wednesday as commodity stocks and banks recovered some ground lost the previous session and with retailers led higher by Marks & Spencer (MKS.L) after firm results.

By 0855 GMT the FTSE 100 .FTSE was up 42.59 points at 5,079.80 having closed 1.3 percent weaker on Tuesday dented by a sharp sell-off in banks after a shake-up at part-nationalised Royal Bank of Scotland and Lloyds Banking Group (LLOY.L).

After the sharp retreat on Tuesday, banks gave a big lift to the index Wednesday, with investors re-evaluating the climate for the sector following the 31 billion pounds ($51.1 billion) in funding from the government agreed for Lloyds and RBS.

Royal Bank of Scotland (RBS.L) and Lloyds Banking Group (LLOY.L) added 3 and 2.1 percent respectively, while Barclays (BARC.L), HSBC (HSBA.L), Standard Chartered (STAN.L) gained 1.1 to 2.6 percent.

Elsewhere among financials, insurer Aviva (AV.L) was up 4.7 percent shrugging aside results that were slightly below forecast, as investors reacted positively to its solvency position.

Miners also recovered some of the previous session's heavy losses, with metal prices climbing.

Rio Tinto (RIO.L), Xstrata (XTA.L), Lonmin (LMI.L), Anglo American (AAL.L), Kazakhmys (KAZ.L) and Fresnillo (FRES.L) added 1.1 to 3.9 percent.

MARKS SPARKLES

Iconic high street retailer Marks & Spencer (MKS.L) was the biggest blue-chip gainer, up 6.1 percent after it reported flat first half profits towards the top end of expectations as tight management of costs and stock offset weak sales.

Rival retailer Next (NXT.L) added 3.6 percent after it reported better than expected third-quarter sales and upgraded its sales and profit guidance for the balance of the year.

Also hinting that the outlook is brightening on the high street, British consumer morale has hit its highest levels in the last two months since April 2008, the Nationwide Consumer Confidence Index showed. [ID:nLAG005888]