FTSE 100 hits 2-month high on strong earnings

(Reuters) -The British benchmark index FTSE 100 closed at a two-month high on Tuesday, buoyed by strong corporate earnings, while investors awaited updates on trade-related developments.

The FTSE 100 rose 0.94%, with a majority of the firms listed in the index trading in green.

The domestically focused FTSE 250 gained 0.7%, touching a more than three-month high.

Diploma gained 15.1%, hitting an all-time high after the technical products and service distributor raised its full-year, organic revenue growth forecast.

Vodafone gained 7.3% after the mobile and broadband provider forecast growth in its largest market - Germany.

Smiths Group rose 4.4% after the engineering company said annual organic revenue growth would reach the top end of its forecast range.

Barclays advanced 1.2% after the British bank hired former UBS banker Marc Warm as its global co-head of capital markets.

Greggs gained 9.2% and boosted the midcap index after the fast-food chain reported sales growth picking up as the year progressed.

Cranswick advanced 3.8% after the meat producer posted annual pretax profit ahead of market forecasts.

On Monday, Britain reached a wide-ranging deal with the European Union including a security and defence pact, fewer restrictions on British food exporters and visitors, and a contentious new fishing agreement.

Meanwhile, Bank of England Chief Economist Huw Pill said the central bank's pace of interest rate cuts had been too fast given still-strong wage pressures on inflation.

Focus will be on Britain's inflation data, which is set to be released on Wednesday.

A Reuters poll of economists predicted that Britain's economy would grow a bit faster this year than thought a month ago, partly due to unexpectedly strong growth in the first quarter that was not expected to persist.

Investors will also look for trade-related deals coming out of the Group of Seven industrialised democracies' meeting in Canada later on Tuesday. Participants were expected to strive for unity on non-tariff issues.

(Reporting by Ragini Mathur, Twesha Dikshit and Sanchayaita Roy in Bengaluru; Editing by Leroy Leo)