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FTSE 100 up 0.3%, FTSE 250 up 0.6%

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Diageo ( DEO ) delivers on annual forecasts, shares jump

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Smith+Nephew surges on profit jump, share buyback plan

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Domino's Pizza slumps on annual profit forecast cut

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UK services sector sees biggest drop in new orders since

Nov

2022

Aug 5 (Reuters) - British equities rose on Tuesday, as

investor confidence was lifted by upbeat results from Diageo ( DEO ) and

Smith+Nephew, while expectations of a Bank of England rate cut

later this week added further support.

The blue-chip FTSE 100 rose 0.3% as of 0935 GMT,

while the domestically focused midcap FTSE 250 gained

0.6%.

Diageo ( DEO ) climbed 6.6% and was among the top gainers in

the FTSE 100, after the world's largest spirits maker forecast

stable 2026 sales despite tariff impacts and upped its

cost-savings target.

The medical equipment and services subindex

led sectoral gains, up 11.1%, reaching its highest since

November 2021, after Smith+Nephew's rise in first-half

profit and announcement of a new $500 million share buyback.

The British medical products gained the most in the FTSE

100, up nearly 15%.

BP added 2.6% after the oil giant said it would

review assets and costs in order to improve profitability, with

second-quarter profit beating expectations.

Fresnillo surged 6% after the miner reported

positive first-half results. Precious metal miners

rose 2.6% as gold prices hovered near a two-week

high.

Travis Perkins was the top gainer on the FTSE 250,

rising 7.7%, after the British building materials supplier said

it expects to deliver full-year adjusted operating profit,

including property gains, broadly in line with market

expectations.

Spectris ( SEPJF ) rose 1.9% after the British scientific

instruments maker agreed to a £41.75-per-share takeover offer

from U.S. private equity firm KKR.

Conversely, Domino's Pizza Group fell 13.6% after it

cut its annual core profit forecast.

Data showed on Tuesday that Britain's services sector

reported the biggest drop in new orders since November 2022 and

cut jobs at the fastest pace in six months, adding to the Bank

of England's growth concerns.

The BoE is widely expected to cut interest rates to 4% on

Thursday from 4.25%, its fifth cut in the current cycle, though

some policymakers may vote to keep rates on hold due to

inflation climbing above its 2% target.