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UPDATE 1-UK stocks gain as trade tensions ease; earnings dictate tempo

* FTSE 100, FTSE 250 up 0.1%

* Improving trade sentiment buoys HSBC

* Compass Group, Kingfisher biggest blue-chip movers

* CYBG gains after reporting H1 profit

* Metro Bank rises as funding details awaited (Adds news items, updates share prices)

May 15 (Reuters) - UK shares rose as risk appetite picked up after U.S. President Donald Trump played down Washington's trade war with Beijing, while a slew of earnings reports drove major share moves.

The FTSE 100 and the FTSE 250 were up 0.1% by 0836 GMT, outperforming their European counterparts. .

Trump on Tuesday described the Sino-U.S. conflict as "a little squabble" and said talks between the world's two largest economies had not collapsed.

"A series of comments and tweets from the President has markets behaving a little more sensibly, but risks still seem skewed to the downside until there is clarity and a (trade) deal," analyst Neil Wilson said.

Asia-focussed HSBC provided the biggest boost to the main index, but it was offset by a drop in mining shares .

On an earnings-heavy day, Compass Group gained the most among blue-chip shares. The world's biggest catering company rose 3.1% after raising its forecast for annual organic revenue growth.

Home improvement retailer Kingfisher led declines with a 2.7% drop after lower first-quarter sales in France, its second-biggest market.

Utilities SSE and National Grid Media fell amid media reports on Labour Party leader Jeremy Corbyn's plans to nationalise energy networks at below market value.

Tour operator TUI fell 1.6% after warning that lack of clarity over the status of its grounded Boeing 737 MAX planes could hit profits.

On the mid-cap index, bank CYBG jumped 5.5% and was on track for its best day in more than three months after it swung to a first-half profit.

Metro Bank, which has seen volatile trading in recent months after disclosing an accounting error, gained 10% as investors awaited details of fresh funding from new and existing investors. (Reporting by Shashwat Awasthi and Muvija M in Bengaluru; editing by Larry King)