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UPDATE 1-Sainsbury's, Lloyds drive Britain's main share index higher

* FTSE 100, FTSE 250 up 0.2 pct

* Sainsbury's jumps 6 pct on profit beat

* Lloyds, BATS among drivers of FTSE gains

* Just Eat slumps on JP Morgan double downgrade (Adds company news items, updates share moves throughout)

May 1 (Reuters) - London's blue chip share index rose on Wednesday as Sainsbury's surged following a profit beat and Lloyds climbed after revising its capital guidance, while U.S.-China trade talks helped miners end a five-day losing streak.

Both the main FTSE 100 index and the midcaps were 0.2 percent higher by 0827 GMT.

Sainsbury's shares jumped 6 percent, their biggest intraday rise in a year, after the supermarket group's underlying full-year profit beat market estimates and it said it would accelerate investment in its store estate and technology.

Rivals Morrisons and Tesco were also boosted, rising by 2 percent and 1 percent respectively.

Adding the most points to the FTSE 100 index was Lloyds , which gained 1.6 percent after it lowered its target for its Common Equity Tier 1 (CET1) ratio - a closely watched measure of balance sheet strength.

Goodbody analyst John Cronin said that meant more headroom for distribution to investors.

After five days of losses, the miners' index recovered as copper prices were boosted by the start of the latest round of talks between China and the United States aimed at ending their protracted trade war.

Markets also awaited the U.S. Federal Reserve's policy statement scheduled for later in the day and Chairman Jerome Powell's press conference shortly afterwards.

British American Tobacco added 1.1 percent, following U.S. peers that rose overnight after the Food and Drug Administration permitted the sale of Philip Morris's tobacco-heating alternative to cigarettes.

London Stock Exchange rose 2 percent after it reported higher quarterly income, as its clearing and information services businesses grew strongly against what it called a challenging market backdrop.

Takeaway group Just Eat, however, tumbled 2.5 percent after JP Morgan said European rivals Delivery Hero and looked more attractive.

Overall trading volumes were slim as many markets elsewhere in Europe were closed for a May 1 public holiday.

Sirius Minerals capped the midcap index's gains as it tumbled 8 percent after announcing it had raised $425 million in a discounted share placing. (Reporting by Muvija M in Bengaluru; Editing by Susan Fenton)