UPDATE 1-Compass drop weighs on FTSE, trade hopes cushion fall

Shashwat Awasthi and Safia Infant

* FTSE 100 down 0.1%, FTSE 250 up 0.3%

* Compass Group slips after warning on Europe performance

* LSE up ahead of vote on Refinitiv deal

* De La Rue issues going concern warning, scraps dividend

* Pets at Home helps mid-caps outshine (Adds news items, analyst comments, updates share prices)

Nov 26 (Reuters) - London's FTSE 100 edged lower on Tuesday as a near 7% slide in catering firm Compass Group offset gains in miners, that rose on hopes of a resolution to the U.S.-China trade spat, while a surge in Pets at Home helped mid-cap stocks outperform.

The main index gave up 0.1%, with Compass tracking its worst day since July 2014, after the company said deteriorating business and consumer confidence hit performance in Europe.

The FTSE 250 held on to a near 15-month high from the previous session, rising 0.3%, as pet supplies retailer Pets at Home Group soared 10% after it forecast annual profit towards the top end of the market view.

By 0850 GMT, the mid-cap index was outperforming the UK blue-chips as well as the broader European benchmark.

Small-cap De La Rue, which last month hit its lowest level in over two decades following a profit warning, plummeted 16% after it raised going concern doubts and scrapped its dividend.

"De La Rue is teetering on the brink," Markets.com analyst Neil Wilson said. "Today's update is worrying for investors because it suggests there's more damage out there to be done to the shares."

Losses on the blue-chip bourse were contained as hopes that the United States and China could yet sign a "phase one" trade deal gained traction after top negotiators from both countries held a phone call to try and hammer out some details.

OANDA analyst Craig Erlam said markets were clinging to every headline that emanates on the trade front, amid a lack of major day-to-day updates.

"The details of the call were lacking, but the language used was promising ... as long as that remains the case, investors will be optimistic of a deal," Erlam said.

The pound weakened slightly after rising in the previous session, leading exporter stocks modestly higher. Durex condom maker Reckitt Benckiser added 1%.

Shares of LSE rose 1.5%. Its shareholders are due to vote on the stock exchange operator's $27-billion deal to buy financial data analytics provider Refinitiv later on Tuesday.

Thomson Reuters , the parent company of Reuters News, holds a 45% stake in Refinitiv. (Reporting by Shashwat Awasthi and Safia Infant in Bengaluru; Editing by Shounak Dasgupta)