UK's FTSE 100 extends gains as consumer staples rally

(Reuters) -Britain's FTSE 100 index edged higher on Tuesday, extending its winning streak to seven consecutive sessions after the long Easter weekend, led by consumer staples and financial shares.

The blue-chip FTSE 100 index rose 0.6% to its highest level since April 4 as consumer staples advanced 1.2%. The midcap index was little changed.

J Sainsbury rose 2.3% after J.P. Morgan raised its target price on the stock. Tesco, Britain's biggest supermarket group, gained 1.5%.

Heavyweight financials added 1.2%.

Mining shares rose 0.9% after copper prices in London hit a more than two-week high.

Homebuilders extended their winning streak to a fifth-straight session with a 1% climb.

However, DCC languished at the bottom of the blue-chip index after the sales and marketing services provider said it will sell its healthcare division to private equity firm Investindustrial Advisors. Its shares fell 3.6%.

Britain's economic outlook faced a major setback as the International Monetary Fund delivered its steepest downgrade for any major European economy, cutting the UK's 2025 growth forecast from 1.6% to 1.1% on potential disruption from U.S. trade tariffs.

On Wednesday, investors will closely monitor comments from BoE Governor Andrew Bailey and Deputy Governor Sarah Breeden at separate events in Washington, as well as a speech by Chief Economist Huw Pill in Leeds.

Financial markets are pricing in a 100% chance of a rate cut at the BoE's monetary policy meeting on May 8.

Last week, British Prime Minister Keir Starmer spoke with U.S. President Donald Trump, discussing bilateral trade, among other subjects.

Britain hopes to negotiate a deal with Trump following his imposition of 10% tariffs on most British imports to the United States, with 25% rates on cars, steel, and aluminium.

(Reporting by Ragini Mathur in Bengaluru; Editing by Sonia Cheema and Richard Chang)