FTSE set for biggest weekly gain since 2011

LONDON (Reuters) - UK shares were set for their biggest weekly gain since 2011 on Friday, with miners pushing Britain's blue-chip index higher after Glencore cut back zinc production and dovish minutes from the U.S Federal Reserve.

Britain's FTSE index was up 24.54 points, or 0.4 percent at 6,399.36 points at 1426 GMT, up 4.4 percent for the week and set for its biggest weekly gain since December 2011.

Miner Glencore topped the list of gainers, rising 6.6 percent after it said it would cut 500,000 tonnes of zinc production, or around 4 percent of global supply, in its latest move to counter weak commodities prices.

The volatile stock is now up over 35 percent this week and set for its biggest weekly rise ever.

Glencore, the world's largest producer of zinc, has already taken measures aimed at cutting its $30 billion debt pile by a third.

"The zinc output cut means less revenue for Glencore but was seen as a positive step by the company to reduce its worryingly high debt pile," said Jasper Lawler, market analyst at CMC Markets.

As zinc prices surged, other metals prices also rallied, helping miners Anglo American, Antofagasta and BHP Billiton, up between 3.3 and 6.5 percent.

The FTSE 350 mining index was up 3.8 percent.

Analysts cited the minutes of the Fed's September meeting as encouraging investors to get back into equities.

The minutes showed that the Fed had been deeply wary of hiking rates even before subsequent economic data showed a sharp slowdown in hiring by U.S. employers.

"So dovish was the tenor of the minutes that I don't even think a rate hike in 2015 is a serious option, and indeed the market seems to agree with that," Jeremy Batstone-Carr, analyst at Charles Stanley, said, adding that market pricing suggested the first U.S. rate hike would take place next March.

Among fallers, Sports Direct was down 6 percent. It extended losses after the British Insolvency Service said that criminal proceedings had been opened against its chief executive.

The stock had already been in negative territory after being cut to "equal weight" from "overweight" by Morgan Stanley.

"With the earlier downgrade, there are a number of stories putting pressure on the stock all at the same time," said David Madden, market analyst at IG.

(Editing by Keith Weir)

By Kit Rees and Alistair Smout