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Britain's FTSE rallies, Fed official's stance calms concerns over China

* FTSE 100 up 2.3 pct

* Fed official Dudley says Sept rate hike less appropriate

* CRH (EUREX: 558474.EX - news) rises after results, acquisition

* Miners rally with price of copper (Adds Lonmin, Hays (LSE: HAS.L - news) )

By Alistair Smout

LONDON, Aug 27 (Reuters) - Britain's top share index rose on Thursday, recouping the previous session's fall, as hopes of lower U.S (Other OTC: UBGXF - news) . rates for longer helped spur markets which had been rocked by concerns over Chinese growth.

Britain's FTSE 100 was up 136 points, or 2.3 percent, at 6,115.36 by 1108 GMT, shadowing gains made on Wall Street and in Chinese stocks. It (Other OTC: ITGL - news) was broadly in line with the pan-European FTSEurofirst 300 index, up 2.7 percent.

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Federal Reserve official William Dudley said that an interest rate hike next month seems less appropriate given the threat posed to the U.S. economy by recent market upheavals.

Those have sent Britain's FTSE 100 down over 9 percent so far in August, set for its biggest monthly loss since October 2008. It fell 1.7 percent in the previous session.

However, some investors said that if the concern over volatility in China delayed Fed rate rises, then the benefits for the global economy from continued easy monetary policy could outweigh the costs of market falls now.

"I believe the events of this week will prove to serve the global economy well in a wider context," Nigel Green, CEO of deVere Group, said in a note.

"Raising rates could have a host of dangerous consequences... the Fed now (has) time to evaluate if an imminent interest rate rise is necessary."

All but one FTSE 100 stock was in positive territory, with China-sensitive stocks such as miners and UK-listed Asian banks among those adding the most points.

Standard Chartered (HKSE: 2888.HK - news) and Anglo American (LSE: AAL.L - news) were the top risers, up more than 5 percent.

Shares (Berlin: DI6.BE - news) of CRH were up 4.9 percent after the Irish building materials company reported a rise in earnings and revenues.

It also bought U.S. glazing products manufacturer CR Laurence in a $1.3 billion deal which one broker described as sensible.

Miners rose 3.2 percent as copper rallied, buoyed by the stock market rally in China, which is the world's largest consumer of metals.

There were some underperformers. Miner Lonmin was flat despite saying it expected full-year underlying cash costs to stay below its guidance, indicating that its deep cost-cutting measures were beginning to bear fruit.

And shares of recruiter Hays underperformed the UK market slightly despite reporting a strong advance in net fees from all its key regions for the first time in seven years. (Reporting by Alistair Smout; Editing by Toby Chopra/Ruth Pitchford)