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FTSE 100 up 0.2%, FTSE 250 flat

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Healthcare stocks lead gains

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Beazley tumbles after lowering annual premium growth

forecast

(Updates with closing levels)

Aug 13 (Reuters) - Britain's FTSE 100 closed higher on

Wednesday, reaching a one-week peak, as expectations of a U.S.

Federal Reserve interest rate cut buoyed demand for risk assets

globally.

The blue-chip index finished 0.2% higher, marking

its third consecutive day of gains, while the domestically

focused midcap FTSE 250 index ended little changed.

European bourses outperformed the FTSE 100 as losses in

energy and financial stocks weighed on the London's benchmark.

Global equities rallied following Tuesday's U.S. inflation

data, which aligned with expectations and strengthened

confidence in a September rate cut by the Fed, propelling Wall

Street to record highs.

This positive sentiment also lifted British markets, with

healthcare stocks leading gains, up 2.7%.

Contrasting with U.S. optimism, British labour data on

Tuesday revealed weak hiring alongside persistent wage growth -

complicating the Bank of England's balancing act between

economic slowdown and stubborn inflation. Markets now anticipate

a delayed BoE rate cut in November.

Next on the market's radar will be Thursday's gross domestic

product data, which economists expect to show the British

economy expanded by 0.1% in the three months to June.

Investors' focus will also be on Friday's high-stakes talks

between U.S. President Donald Trump and Russian President

Vladimir Putin regarding a potential deal to end the conflict in

Ukraine.

A gauge of Britain's energy companies

declined 0.6% as oil prices fell more than 1% in the day, though

losses were limited after U.S. Treasury Secretary Scott Bessent

indicated sanctions against Russia or secondary tariffs could

increase if Friday's meeting disappoints.

Meanwhile, financials weakened with the non-life insurers

index falling 3.5%. Beazley tumbled

12.3% in its worst one-day decline in nearly five years, after

it lowered its annual premium growth forecast, partly hurt by

subdued demand for its cyber and property risk insurance.

Among other movers, infrastructure products maker Hill &

Smith ( HSHPF ) topped the gains on the midcap index, rising

10.2%, after its half-yearly results and announcement of a share

buyback programme.