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June 10 (Reuters) - UK's main FTSE indexes hovered near

three-week lows on Wednesday as investors eyed a fragile

ceasefire in the Middle East, while mulling the outlook for

companies following a grim report from travel retailer WH

Smith.

The blue-chip FTSE 100 index and the midcap FTSE 250

inched up 0.2% each by 0752 GMT.

* WH Smith tanked 16.4% to its lowest since late

2010 after cutting its annual profit forecast for the second

time in two months on and launched an equity raise to bolster

its finances as the Iran war disrupts global travel and hurts

passenger spending. The stock was the top decliner on the

mid-cap index.

* Banks were among top sectoral decliners

with a 1% fall, as shares of Hong Kong exposed HSBC ( HSBC ) and

Standard Chartered ( SCBFF ) lost 1.9% and 0.8%, respectively.

The lenders have been under pressure since Beijing unveiled

tighter capital controls to limit cross border investments and

brokerage J.P.Morgan said the impact could be greater than

previously anticipated.

* Middle East tensions were high as the U.S. and Iran traded

fresh fire, although crude prices stayed steady, offering some

relief to investors as they looked for details on the deal to

open the Strait of Hormuz that President Donald Trump said is on

the horizon.

* Inflation concerns, due to elevated crude prices, have had

investors price in a 25 basis point interest rate hike by the

Bank of England by September, according to LSEG-compiled data.

U.S. inflation data later in the day could also offer insights

on the Federal Reserve's monetary policy path.

* Among others, Pennon Group ( PEGRF ) slipped 1.3% after its

new CEO warned operational discipline must improve, even as the

water utility returned to annual profit.

* EnQuest ( ENQUF ) shot up 18% after the North Sea-focused

oil producer agreed to buy interests in four offshore contracts

in Malaysia for up to $833 million from state-run Petronas, as

it expands its South East Asian presence.