UK's FTSE rises but underperforms rival European markets

(ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report for more details)

* FTSE up but underperforms DAX and CAC

* Housebuilders fall on London market worries

By Sudip Kar-Gupta

LONDON, April 11 (Reuters) - Britain's top shares index rose on Monday, lifted by gains at mining and banking stocks, although a fall in housebuilding stocks meant the London market underperformed bigger gains elsewhere in Europe.

The blue-chip FTSE 100 index was up 0.2 percent at 6,216.26 points going into the close of trading.

Gains in banking and mining stocks added the most points to the FTSE.

Banks such as Barclays (LSE: BARC.L - news) rose on the back of similar gains at their European peers, after Italian bank stocks surged on expectations that the Rome government will soon thrash out a plan to set up a state-backed fund to buy bad loans and plug capital shortfalls.

Mining stocks such as Anglo American (LSE: AAL.L - news) and Glencore (Amsterdam: GX8.AS - news) also rose, boosted by data showing that deflationary pressures had eased in China, which is the world's biggest consumer of metals.

However, shares in housebuilders such as Berkeley Group , Barratt Developments (LSE: BDEV.L - news) , Taylor Wimpey (LSE: TW.L - news) and Persimmon (Other OTC: PSMMF - news) all fell on concerns about UK economic growth and a slowdown in the London prime property market.

This meant the FTSE underperformed bigger gains elsewhere in Europe, with Germany's DAX rising 1 percent while France's CAC advanced 0.5 percent.

Traders also pointed to the fact that the FTSE was failing to get above the 200-day moving average level - a technical point showing a stalling in its recent rally.

"I wonder how much conviction there is to the recent move higher. The FTSE appears to be losing a bit of momentum," said Admiral Markets' Darren Sinden.

The FTSE is down 0.5 percent so far in 2016, and remains some 13 percent below a record high reached in April 2015, as concerns about a China-led global economic slowdown knocked back world stock markets.

ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.

If you have any thoughts, suggestions or feedback on this, please email mike.dolan@thomsonreuters.com.

Mike Dolan, Markets Editor EMEA. (Additional reporting by Kit Rees; Editing by Alison Williams)