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FTSE 100 up 0.4%; FTSE 250 gains 0.3%

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AstraZeneca ( AZN ) gains after drug meets late study goals

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Associated British Foods ( ASBFF ) up after stock upgrade

June 13 (Reuters) - The UK's blue chip index held just

below its all-time high hit last week as investors assessed the

trajectory of U.S. tariffs as well as domestic interest rates,

while AstraZeneca ( AZN ) gained on successful drug trial results.

The blue-chip FTSE 100 was up 0.4% as of 1105 GMT,

while the domestically oriented FTSE 250 index added

0.3%.

AstraZeneca ( AZN ) added 1.4% after the pharmaceutical

giant said its experimental drug baxdrostat succeeded in

lowering high blood pressure in a late-stage study of people

whose condition was hard to control or treat.

Associated British Foods ( ASBFF ) rose about 3% after

brokerage Panmure Liberum upgraded the retailer to "buy."

The European Union and South Korea said they were working on

trade deals with the U.S. that would soften the blow from

looming tariffs as Washington threatens hefty duties from August

1.

Meanwhile, Britain's labour market cooled sharply in June

and the number of people available for work jumped at the

fastest pace since the COVID-19 pandemic, according to data also

watched by the Bank of England.

The BoE is expected to cut interest rates next month for the

fifth time since last August, with traders betting on an 89%

chance of a 25 bps deduction, as per data compiled by LSEG.

The country's inflation figures, due on Wednesday, will

offer fresh cues on the central bank's rate path.

Investors will look out for fresh notes on the nation's

fiscal health when finance minister Rachel Reeves, alongside BoE

Governor Andrew Bailey, gives the annual Mansion House speech to

London's financial sector on Tuesday.

Among other stocks, Ashmore gained 2.2% after the emerging

markets-focussed asset manager reported slower quarterly net

outflows.

The FTSE 100 index logged its biggest weekly percentage gain

in two months on Friday, led by mining and healthcare stocks.