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

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

*

FTSE 100 up 0.1%, FTSE 250 0.3%

*

UK budget announcement on Wednesday

*

S4 Capital ( SCPPF ) plunges after forecast cut

Nov 24 (Reuters) - The UK's midcap index was on course

to snap an eight-day losing streak on Monday as housing stocks

rose on positive comments from brokerage Goldman Sachs, while

investors awaited the UK government's highly anticipated budget

this week.

The FTSE 250 index of domestically oriented UK firms

edged up 0.3%, bouncing from its longest losing streak in more

than two years. The blue-chip FTSE 100 was up 0.1% by

1139 GMT.

Housebuilders such as Vistry and Barratt Redrow ( BTDPF )

rose 5.3% and 1%, respectively, after Goldman Sachs

started coverage of the sector with a "constructive outlook",

saying the upcoming budget will help remove some of the

uncertainites surrounding the sector.

The midcap index has shed nearly 5% from its October peak

amid a rout in global stocks as well as mixed messaging around

the UK budget due to be announced on Wednesday.

Finance minister Rachel Reeves looks set to raise taxes by

tens of billions of pounds for the second time since the

election to stay on track to meet her borrowing targets, hoping

to avoid a bond market selloff while also increasing welfare

spending.

Reeves is no longer expected to break an election promise by

raising income tax and will resort instead to increases in a

range of other taxes.

Meanwhile, global stocks climbed after comments from a U.S.

Federal Reserve official last week boosted expectations for a

December rate cut. The gains followed a sharp pullback in equity

markets on concerns over elevated valuations in AI stocks.

UK bank stocks climbed after Morgan Stanley estimated net

interest income growth of 4% next year for European banks.

Standard Chartered ( SCBFF ) climbed 2.5% after the brokerage

upgraded the lender to "overweight" from "equal-weight."

Barclays ( BCS ) added 1.6% after Morgan Stanley named it a top

pick.

Among other stocks, advertising firm S4 Capital ( SCPPF ) and

M&C Saatchi plunged more than 8%, with the former

hitting a record low, after the companies downgraded their

annual profit and revenue outlooks.

Anglo American was little changed after global miner

BHP abandoned a last-ditch effort to buy its rival.