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FTSE 100 up 0.7%, FTSE 250 rises 1.1%

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JD Sports gains on upbeat Nike ( NKE ) forecast

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FTSE 250 touches 3-yr closing high

(Updates with market closing prices)

June 27 (Reuters) -

The main UK stock indexes climbed on Friday, with midcaps

closing at an over three-year high, driven by global optimism

over earnings, trade policies and easy monetary policy.

The internationally focussed FTSE 100 rose 0.7%,

while the domestically oriented FTSE 250 jumped 1.1% to

close at its highest level since February 2022.

Markets have rebounded in recent weeks due to easing

concerns over the Middle East conflict, signs of U.S.-China

trade negotiations and potential for U.S. interest rate cuts.

The main Wall Street indexes - the S&P 500 and the Nasdaq -

touched intraday

record highs

on Friday, with technology stocks in the lead as soft

economic data supported more rate cuts from the Federal Reserve.

Also aiding sentiment, the U.S. and China have resolved

issues surrounding shipments of rare earth minerals and magnets

to the U.S., Treasury Secretary Scott Bessent

said

, ironing out a dispute that stalled a deal reached in May.

Meanwhile, British Prime Minister Keir Starmer sharply

scaled back

planned welfare cuts to quell a damaging rebellion by

lawmakers in his governing Labour Party. Starmer's reforms had

sought to shave 5 billion pounds ($6.9 billion) per year off a

rapidly rising welfare bill.

The reforms are set to be put to a vote in parliament on

July 1.

JD Sports was among the top gainers on the

blue-chip FTSE 100, advancing 7.6% after U.S. peer

Nike's ( NKE )

upbeat earnings bolstered sportswear brands.

Unilever ( UL )

shares rose 1% after the Financial Times reported

it was buying men's personal care brand Dr Squatch from private

equity firm Summit Partners for $1.5 billion (1.09 billion

pounds).

On the flip side, the FTSE 350 precious metals and

mining index dropped 4.4% as gold prices

declined following a ceasefire between Iran and Israel.

Fresnillo and Endeavour Mining ( EDVMF ) fell

more than 4%, while Hochschild Mining lost 2.6%.