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FTSE 100 up 0.5%, FTSE 250 up 0.5%

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Ashtead gains on Q1 revenue rise

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Watches of Switzerland ( WOSGF ) up after ruling out US tariff

impact

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UK to deliver budget on November 26

Sept 3 (Reuters) -

UK shares rebounded on Wednesday, led by gains in healthcare

and mining stocks, after suffering their worst day in nearly

five months during the previous session amid fiscal concerns.

The blue-chip FTSE 100 and the domestically focussed

midcap index added 0.5% each by 1011 GMT.

British finance minister Rachel Reeves said she would

deliver her annual budget on November 26, emphasizing a "tight

grip" on public spending to help lower inflation and borrowing

costs.

Market scrutiny of the UK has intensified on concerns about

fiscal control, with fears that tax rises could slow growth

without significantly boosting revenue.

On the day, British 20- and 30-year gilt yields

rose to their highest since 1998, pushing past highs

set the day before while sterling extended Tuesday's heavy

losses.

Precious metal miners rose, tracking gold

prices that surged to a fresh record high. Fresnillo

and Hochschild Mining rose 6.1% and 6.5%, respectively.

Industrial miners also advanced with Glencore ( GLCNF )

, Anglo American and Antofagasta ( ANFGF ) adding

over 2.5% each.

The healthcare sector rose with heavyweight

AstraZeneca ( AZN ) gaining 1.9%.

Industrial stocks such as Rolls-Royce, British

Airways owner IAG and Babcock also advanced.

Construction equipment rental company Ashtead rose

1.6% on higher first-quarter revenue.

Conversely, non-life insurers fell with

Admiral Group and Hiscox ( HCXLF ) down about 1.5% each.

In other news, Watches of Switzerland ( WOSGF ) jumped 7.1%,

to top the mid-cap index, after saying it was on track to report

fiscal first-half results in line with its expectations on

strong U.S. demand.

Hilton Food Group ( HLTFF ) fell 18.8% after flagging higher

costs in its seafood business and regulatory curbs at its Foppen

unit in Greece.

In a brighter spot for the country's economy, a survey

showed a jump in new business drove Britain's services sector to

its fastest growth in over a year last month as worries about

U.S. tariffs eased, though firms still feared potential tax

increases at home.

Meanwhile, Bank of England Governor Andrew Bailey is due to

answer questions from the House of Commons' Treasury Committee

at 1315 GMT.

U.S. job openings data for July is also expected on the day.