Last checked at 
* FTSE 100 up 0.7 pct
* Oil & gas shares rise, U.S. shale output cut
* Glencore up 2.7 pct, other miners follow
* Astrazeneca falls on declined drug application
By Kit Rees
LONDON, Oct 16 (Reuters) - Britain's top share index rose onFriday as investors stepped in to bet on commodities stocksafter oil and metals prices climbed higher on cuts to globalsupply.
Oil & gas companies BP and Royal Dutch Shell rose 2.1 and 2.5 percent respectively on the back of hopes thata decline in U.S. shale output would cut a global surplus.
Mining companies also gained, with Glencore leadingthe index, up 2.6 percent, joined by Anglo American, up0.6 percent after copper prices climbed close to a one-monthpeak on cuts to mine supply and a revival in Chinese demand.
Miner Rio Tinto edged higher, up 0.2 percent afterposting a 17 percent rise in third-quarter iron ore shipmentsand said it was on track to meet a full-year target of 340million tonnes despite risks of slowing economic conditions andpeaking steel output in China.
"These stocks have had a major hammering (in) the lastnumber of months," David Madden, market analyst at IG, said,adding that investors could be seeing the relatively cheapmining stocks as a bargain-hunting opportunity.
The FTSE 100 index was up 0.7 percent at 6,380.75points early in the session, slightly underperforming itsEuropean peers.
Pharmaceutical company Astrazeneca was down 0.1percent after U.S. health regulators declined to approve itsfixed-dose combination of the diabetes drugs saxagliptin anddapagliflozin, with the regulators requiring more clinical data.
Burberry was the top faller on the index, down 1.3percent to extend the previous session's slide.
The luxury firm fell 8.2 percent on Thursday followingresults that showed a sharp sales slowdown, and on Friday itsuffered numerous price target cuts from brokers.
Adding to negative sentiment in the sector, Hugo Boss issued a profit warning to send luxury stocks acrossEurope lower.
(Editing by Alison Williams)
