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FTSE 100 up 0.5%, FTSE 250 rises 0.6%

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JD Sports among top gainers on upbeat Nike earnings

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Unilever ( UL ) to buy men's grooming brand Dr Squatch

June 27 (Reuters) - The UK's stock indexes climbed on

Friday, with the midcaps hovering at a 10-month high, driven by

global optimism over earnings, trade policies and monetary

policy path.

The internationally focussed FTSE 100 rose 0.5% by

1031 GMT, while the domestically oriented FTSE 250 added

0.6% and was on track for its biggest weekly gain since mid-May.

Markets have rebounded this week due to easing concerns over

the Middle East conflict, signs of U.S.-China trade negotiations

and potential for U.S. interest rate cuts. Asian shares rose to

their highest in over three years and both the S&P 500 and

Nasdaq closed near record highs.

Investors will closely assess U.S. PCE data, the Federal

Reserve's preferred gauge of inflation, later today for hints of

the path of monetary policy.

Also aiding sentiment, the United States reached an

agreement with China on how to expedite rare earth shipments to

the U.S., a White House official said, amid efforts to end a

trade war between the world's biggest economies.

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 6.6% after U.S. peer Nike's upbeat earnings

bolstered sportswear brands.

Unilever ( UL ) shares rose 0.9% after news that 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 flipside, precious metals and mining index

dropped nearly 2% as safe-haven gold declined

following a ceasefire between Iran and Israel.

Fresnillo fell 2.6%, Endeavour Mining ( EDVMF ) and

Hochschild Mining lost 1.8% each.