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Post-Brexit vote rebound sees FTSE 100 set for biggest weekly rise since 2011

(ADVISORY- Follow European and UK stock markets in real time on the Reuters Live Markets blog on Eikon, see cpurl://apps.cp./cms/?pageId=livemarkets)

* FTSE 100 up 0.3 pct, touches 2016 high

* Fourth straight session of gains

* Carney rally fades, banks give up gains

* Precious metals miners stay in demand

By Alistair Smout

LONDON, July 1 (Reuters) - Britain's top share index rose on Friday to touch a new high for 2016 and leaving it set to post its biggest weekly rise in 4-1/2 years as the rebound from last week's Brexit vote sell-off continued.

Britain's FTSE 100 was up 18.88 points, or 0.3 percent, at 6,523.21, rising for a fourth straight session and taking gains on the week to 6.3 percent. That left the index set for its biggest weekly gain since December 2011.

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Following a two day sell-off after Britain voted to leave the EU in a referendum last week, the FTSE 100 has rebounded strongly, led by rises in its dollar earners and commodity stocks, which are insulated from uncertainty over the domestic economy.

That has more than made up the fall in the wake of the vote, and on Thursday it closed at its highest level since August 2015.

The index had opened Friday with stronger gains, briefly hitting a new 2016 high, with banks remaining in favour after Bank of England Governor Mark Carney said late in the session on Thursday the central bank would probably need to pump more stimulus into Britain's economy over the summer after the shock of the Brexit vote.

However, the index was off those highs, and turned lower, tracking a move in the sector across Europe.

The sector move came after sources said that the European Central Bank is not currently considering buying government debt out of proportion to euro zone countries' shareholding in the bank, cooling speculation that the ECB might use more unorthodox stimulus measures in light of the Brexit vote.

Even (Taiwan OTC: 6436.TWO - news) though the market was off its highs, analysts said that the prospect of stimulus in the UK that might put pressure on the pound would support the FTSE 100, which has high international exposure, and make stocks a relatively attractive asset.

"The future does look bright for the FTSE 100 as possible rate cuts are back on table. If cuts do materialise then the lower cost of debt could help boost company's investment plans, which they may have put on the back burner after Brexit," Nathan Sage, Market Analyst at PhillipCapital UK, said in a note.

"Most importantly an even weaker pound than we have now will help the largest of the UK's companies, who mostly do business with the EU, become more competitive on their exports, assuming they can still trade within the single market."

Precious metals miners were the top gainers on the index, with Fresnillo (Other OTC: FNLPF - news) and Randgold up 2.8 percent and 2.1 percent respectively.

The referendum has spurred appetite for safe-haven metals, and gold was headed for a fifth weekly gain in a row, while silver hit a 22-month high. (Editing by Toby Chopra)