(Updates after markets close)

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

Thursday, supported by a recovery in financials stocks, though

concerns lingered over the Iran war and surging corporate

spending on artificial intelligence.

The blue-chip FTSE 100 closed 0.5% higher at

10,303.9 points, while the midcap FTSE 250 added 0.1%.

* HSBC ( HSBC ) and Standard Chartered ( SCBFF ) added 2.2%

and 3.4%, respectively, while Prudential rose 2.5%.

* 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.

* Industrial metal miners gained 1.8%, with

heavyweights Rio Tinto and Glencore ( GLCNF ) up around

2% each.

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

down 3.4% and 5.3%, 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 6% 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

15.4% after it forecast organic constant-currency revenue for

fiscal 2027 to grow at a slower pace.

* The European Central Bank raised interest rates for the

first time in nearly three years, against the backdrop of

escalating Middle East tensions.

* Traders expect the Bank of England to raise borrowing

costs by 25 basis points in September, according to data

compiled by LSEG, to combat price pressures.

* Local politics was also in focus as Britain's defence

minister, John Healey, resigned over a disagreement about

defence spending.