British stocks rise on trade optimism

May 16 (Reuters) - British equities closed higher on Friday, as the recent de-escalation of the global tariff war supported risk appetite, while investors anticipate more trade agreements ahead.

The blue-chip FTSE 100 .FTSE gained 0.6%, closing at its highest in nearly 2 months. The index posted a weekly gain of about 1%.

The midcap index .FTMC gained 0.6% and posted its higest closing since February 10.

The index gained 1.7% this week, notching its seventh consecutive weekly advance.

On Friday, President Donald Trump said U.S. officials will send letters to countries in the next few weeks, outlining the costs associated with doing business in the United States, though he did not provide additional details.

This week, investors cheered the U.S.-China trade war truce, which significantly reduced global recession risks, alongside benign economic data and mostly positive corporate earnings results, despite some underlying caution.

Some major brokerages have revised their U.S. recession forecasts downward after a temporary tariff truce between the U.S. and China eased global trade tensions and sparked a rally in riskier assets this week.

UK's healthcare subindex .FTNMX201030 gained 1.7%, with AstraZeneca AZN.L posting a 1.9% rise.

Energy stock .FTNMX601010 gained 0.9% after oil prices edged up. O/R

Heavyweight BP BP.L gained 1.2% in the FTSE 100.

Wealth manager St James's Place SJP.L rose 2.1% after J.P. Morgan raised its price target on the stock.

Keeping gains in check, precious .FTNMX551030 and industrial metal miners .FTNMX551020 fell 1.9% and 1.6%, respectively, tracking lower gold and copper prices. GOL/ MET/L

Future PLC FUTR.L fell 10.3%, the top loser among midcap stocks, after the publishing firm said it will adopt a "more cautious view" for the second half of the year.

Workspace Group WKP.L fell 6.4% after the office-space provider said it expects trading profit headwind of about 7 million pounds ($9.30 million).

Looking ahead, the UK-EU summit on May 19 will take centre stage, in which both sides hope to improve post-Brexit ties following Trump's upending of security and trade alliances.

Market participants will also monitor next week's consumer inflation data, which could influence the Bank of England's monetary policy stance.

($1 = 0.7530 pounds)

For related prices, Reuters users may click on -  UK stock report     .L     FTSE index:         0#.FTS6  techMARK 100 index: .FTT1X         FTSE futures:     0#FFI:  Gilt futures:       0#FLG:         Smallcap index:    .FTSC  FTSE 250 index:     .FTMC          FTSE 350 index:    .FTLC  Market digest:      .AD.L          Top 10 by vol:     .AV.L  Top price gainers:  .NG.L          Top % gainers:     .PG.L  Top price losers:   .NL.L          Top % losers:      .PL.L 
     For related news, click on - UK hot stocks:      HOT and GB     Wall Street:          .N Gilts report:       GB/            Euro bond report GVD/EUR Pan European stock report: .EU Tokyo stocks:       .T             HK stocks:           .HK Sterling report:    GBP/           Dollar report:      USD/
     For company prices, click on - Company directory:  UKEQ          By sector:          FTAX 
     For pan-European market data, click on - European Equities speed guide................ EUR/EQUITY  FTSE Eurotop 300 index........................... .FTEU3  DJ STOXX index................................... .STOXX  Top 10 STOXX sectors........................ .PGL.STOXXS  Top 10 EUROSTOXX sectors................... .PGL.STOXXES  Top 10 Eurotop 300 sectors.................. .PGL.FTEU3S  Top 25 European pct gainers.................... .PG.PEUR  Top 25 European pct losers..................... .PL.PEUR