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June 11 (Reuters) - London's FTSE 100 index edged up on

Thursday, supported by a recovery in financials stocks, but

gains were restrained by simmering tensions in the Middle East

and concerns about surging corporate spending on AI.

The blue-chip FTSE 100 rose 0.6% to 10,316.05 points

by 0917 GMT, while the midcap FTSE 250 was flat.

* HSBC ( HSBC ) and Standard Chartered ( SCBFF ) added 2%

each, while Prudential rose 3.4% to lead gains on the

blue-chip index.

* Hong Kong-exposed stocks were bouncing back from sharp

declines over the past week after China tightened rules for

cross-border investments - a lucrative business for UK

companies.

* Software stocks Relx ( RELX ) and Sage Group ( SGGEF ) were

down 1.6% and 2.5%, respectively, tracking losses in euro zone

companies such as SAP and Capgemini.

* Oracle unveiled new debt-backed AI spending

plans. UBS downgraded the broader European IT sector, as

investors worry that enterprise clients may pivot from

traditional software companies to newer AI models.

* Frasers Group ( SDIPF ) inched up 1% after the retailer

controlled by British billionaire Mike Ashley launched a €2

billion ($2.31 billion) takeover offer for struggling German

fashion brand Hugo Boss.

* Wizz Air ( WZZAF ) gained 5.3% after its operating profit

beat analysts' expectations. The carrier, however, forecast

lower revenue per available seat kilometre for the first

quarter, citing Iran war disruptions.

* British health and safety device maker Halma slid

12.6% after it forecast organic constant-currency revenue for

fiscal 2027 to grow at a slower pace.

* The European Central Bank's verdict and outlook on

interest rates will be closely monitored later in the day

against the backdrop of escalating Middle East tensions.

* Traders anticipate the Bank of England to raise borrowing

costs by 25 basis points in September, according to data

compiled by LSEG, to combat price pressures.