(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

* Energy stocks set to outperform peers in July

* NatWest ( NWG ) gains after 2026 performance outlook raise

* IG slides after $1.3 bln deal for prediction markets

operator Underdog

July 31 (Reuters) - London's FTSE 100 hit an intraday record

high for the third session in a row on Friday, and was set to

register weekly and monthly gains, as robust earnings buoyed

markets through a week of central bank decisions and Middle East

hostilities.

The blue-chip FTSE 100 index rose 0.5% to 10,947.73

points by 1003 GMT, poised for its biggest monthly jump since

February, and sharpest weekly gain in over two months, while the

midcap FTSE 250 climbed 0.4%.

* On Friday, miners were the biggest boosts to the index,

with industrial metal miners rising 2.1%,

tracking a rise in copper prices. Precious metal miners

rose 0.9%.

* Heavyweight energy stocks added 1.4%,

despite a dip in oil prices to below $90 a barrel. The sector

has gained over 15% in July, set to outperform peers, as

U.S.-Iran hostilities escalated, threatening fuel supplies.

* Corporate earnings were in full swing, with investor

attention split between reports and macro factors.

* NatWest ( NWG ) gained 4.3% after the lender reported a

better-than-expected first-half operating profit before tax of

£4.3 billion ($5.8 billion) and raised its outlook for the year.

* IG Group ( IGGRF ) sank 10.2% to the bottom of the FTSE 100

after it agreed to acquire U.S. daily fantasy sports and

prediction markets operator Underdog for up to $1.3 billion.

* Sainsbury's ( JSNSF ) inched up 2.5% after the supermarket

chain agreed to sell Argos for at least £120 million ($161

million), exiting the general retail business.

* This week, U.S. Federal Reserve Chair Kevin Warsh said

policymakers were committed to combating inflation after a

divided Fed kept interest rates unchanged, providing little

clarity on the central bank's next move.

* The Bank of England on Thursday also held rates, but the

number of dissenters stood at three compared with expectations

of two, as the impact of the Iran conflict on the economy

worried policymakers.

* Greggs ( GGGSF ) shed 6% to end at the bottom of the FTSE

250 after RBC downgraded the fast-food chain's stock to "sector

perform" from "outperform".