The top share index rose on Friday, continuing to recoup losses sustained earlier the week, as concerns over Greece's proposed vote on its bailout package eased, offsetting worries over corporate earnings.

London's blue chips <.FTSE> climbed 15.27 points, or 0.3 percent to 5,560.91 by 0757 GMT.

The index has gained near 3 percent from its close on Tuesday, as Greek Prime Minister George Papandreou has backed down from his referendum proposal, but concerns remain over the stability of the Greek government and unity of the nations within the euro zone to deal with the debt crisis.

Papandreou faces a cliff-hanger late-evening confidence vote on Friday as his days as premier looked numbered amid opposition calls for his resignation and a deal with his cabinet under which, government sources said, he agreed to quit after negotiating a coalition with conservative rivals.

In a continuing sign of the corporate world's lack of faith in the euro zone, RBS became the latest banks to cut its holdings of sovereign debt from Portugal, Italy, Ireland, Greece and Spain.

The bank slashed its exposure to the countries to 772 million pounds at the end of September, from 4 billion at the start of the year, with most sales in the third quarter.

RBS shares rose 4.5 percent to the top of the FTSE 100 leaderboard, as risk appetite among investors remained, for the time being, entrenched on the upside.

Cavendish Asset Management fund manager Paul Mumford says the fact that RBS has a core Tier 1 capital ratio of 11.3 percent and liquidity pool of 170 billion pounds should help the part-nationalised lender weather the current market turmoil caused by Europe's sovereign debt crisis.

The banks have built up their balance sheets, and that takes a bit of the pressure off them, says Mumford, who holds some 4.5 million RBS shares.

Barclays , which earlier this week said it has reduced its exposure to troubled euro zone nations rallied in tandem with RBS, gaining 2.4 percent.


Miners rose too as investors tucked into riskier assets, a theme trumpeted by Citigroup analyst Jonathan Stubbs who said: We have suggested that investors take on risk into weaker markets. Downside protection from valuation and 'forced' policy/political action.

Rio Tinto and Kazakhmys were among the top gainers in the mining sector, up 1.2 and 1.3 percent, respectively, as UBS added both firms to its most preferred European mining stocks list.

The UK's benchmark index also received a boost after a G20 draft action plan showed the U.S. committed to timely near-term measure to sustain economic recovery.

With global growth a major concern, October U.S. non-farm payrolls, due at 1230 GMT, will be of major interest.

Non-farm payrolls are forecast to rise by 95,000, after a 103,000 increase in September, and the unemployment rate is seen static at 9.1 percent.

Highlighting the need for a continued recovery in the world's biggest economy, earnings from big UK-listed corporates added to investors concerns over the slowing growth.

Third quarter numbers from the likes of RBS, Smith and Nephew and IAG all missed estimates indicating a slowdown across the economy, Manoj Ladwa, senior trader at ETX Capital said.

International Airlines Group shed 3.6 percent, paring the previous session's gains, after reporting a 31 percent fall in third-quarter profit and announcing it is to buy Lufthansa's British unit bmi.

British aircraft parts supplier Meggitt fell 3 percent after its Q3 results, with analysts citing valuation concerns for the fall.

Smith & Nephew dropped 4 percent, as Europe's largest artificial hip and knee maker's third-quarter trading profit missed expectations.

(Editing by Mike Nesbit)