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FTSE 100 0.5%, FTSE 250 adds 0.6%

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Prudential plans $2 bln share buyback; shares rise

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Britvic ( BTVCF ) up after PepsiCo ( PEP ) to waive a change of control

clause

(Updated at 1550 GMT)

By Purvi Agarwal and Pranav Kashyap

June 24 (Reuters) - London stocks kicked off the week on

a positive note, driven by gains from life insurer Prudential,

although caution lingered ahead of inflation data from the

United States that could set the outlook for global interest

rates.

The blue-chip FTSE 100 closed 0.5% higher, touching

a three-week high and hitting the psychological 8,300 mark

earlier in the session.

The mid-cap FTSE 250 gained 0.6%.

Prudential also boosted the life insurance sector

to a two-week high, with a 7.3% jump after it

announced a $2 billion buyback plan.

This week, the UK will release its Gross Domestic Product

(GDP) numbers that will provide more insight into the state of

the British economy. Strong retail sales data on Friday tempered

some of the optimism that followed comments from the Bank of

England.

The bank kept interest rates unchanged on Thursday, and

dovish comments from policymakers raised expectations of an

August cut.

A domestic inflation report last week showed that headline

inflation in the economy had fallen to 2% - the BoE's target.

The looming British parliamentary election, which is less

than two weeks away, added to market caution.

In the U.S., investors are looking to personal consumption

expenditure numbers (PCE) due on Friday for signs inflation has

eased.

Among stocks on the rise, Britvic ( BTVCF ) jumped 7.1% after

PepsiCo ( PEP ) agreed to waive a change of control clause in

its bottling arrangements with the soft drinks maker, a move

that could pave way for Carlsberg to raise its bid

for the company.

The stock was the top gainer on the mid-cap index.