* FTSE 100 up 0.8%, FTSE 250 up 0.2%
* Easing trade sentiment lifts mood
* Pearson , Carnival falls after profit warning
* Imperial Brands falls after forecast cut
* IAG down after saying pilot strikes to hit profit
(Adds news items, analyst comment, updates to closing prices)
By Yadarisa Shabong and Shashwat Awasthi
Sept 26 (Reuters) - London's FTSE 100 share index surged to
multi-week highs on Thursday, outpacing its European peers, as
signals that the Sino-U.S. trade war could soon be resolved
overpowered losses in blue-chip stocks drowned by profit
warnings.
The FTSE 100 .FTSE closed 0.8% higher, earlier touching
its highest level in nearly eight weeks, after China's commerce
ministry said it was is in close communication with Washington
over next month's trade talks, and President Donald Trump said
overnight that a deal could be struck soon. Gains were seen across all the sectors, led by heavyweight
energy stocks RDSa.L BP.L and shared among financials and
healthcare shares, which, along with sterling weakness, helped
Britain's main index outperform the broader European benchmark.
.STOXX
China's conciliatory statement also offset losses in tobacco
firm Imperial Brands, education company Pearson, British Airways
owner IAG and cruise operator Carnival, all of which warned on
results.
"Keeping the FTSE buzzing was its commodity sector,
obviously influenced by Trump's trade deal rumours, alongside
the continued misery of sterling," Spreadex analyst Connor
Campbell said.
"The pound failed to make any in roads to regarding a
recovery... paralysed by all the recent talk of a general
election." Campbell added.
A weaker currency broadly helps bigger, internationally
focused companies by inflating the value of their overseas
revenues, but can weigh domestically focused small and medium
sized firms.
The mid-cap FTSE 250 .FTMC inched higher after three
consecutive sessions of losses but was only up 0.2%, with gains
kept in check by the weaker pound as the Brexit malaise showed
no signs of easing. "A testy session for MPs (members of parliament) yesterday
sets the tone for the run-in to the Brexit deadline. No-deal
remains on the table," Markets.com analyst Neil Wilson said.
FLURRY OF PROFIT ALERTS
Imperial Brands, maker of blu e-cigarettes, cut its annual
sales and profit view, saying the regulatory crackdown on vaping
in the United States would hurt its results. Imperial's stock IMB.L tumbled more than 12% to its lowest
since January 2011 and registered its biggest one-day drop ever.
"...Hopes had been high that the vaping segment would drive
growth as traditional tobacco declines. Increased regulatory
scrutiny and retailers reluctant to stock vaping products is
seriously undermining that hope," Hargreaves Lansdown analysts
said.
Pearson PSON.L slid 14% to its lowest since late February
2018 after saying full-year profit would be at the bottom of its
guided range, while IAG ICAG.L also fell 4% after blaming
pilot strikes for an expected 215 million euros shortfall in
annual profit. London-listed shares of cruise-operator Carnival CCL.L
dropped 7% after slashing its annual profit forecast as it
expects to take a hit from higher fuel prices.
Among mid-caps, travel-food company SSP Group SSPG.L fell
the most on the index as it slipped 9%, after saying it expected
challenges in 2020 due to economic uncertainties and
expectations of capacity cuts by airlines.