UK midcaps close at 10-month high with focus on earnings, rate path

June 26 (Reuters) - The UK's main stock indexes rose on Thursday, with midcaps closing at a 10-month high as investors digested corporate results and considered the outlook for interest rates after data indicated softening consumer spending.

The internationally-focused FTSE 100 .FTSE ended up 0.2%, with a jump in the pound GBP=D3 to its highest since 2021 weighing on dollar earners such as Unilever ULVR.L and HSBC HSBA.L. GBP/

Traders also scrutinised Shell's SHEL.L latest comments after the oil giant denied reports of ongoing talks to acquire rival BP BP.L. Shares in both companies traded marginally higher.

Focus globally was on the path of U.S. interest rates after a report said U.S. President Donald Trump was planning to choose the next Federal Reserve chief early, fuelling new bets on rate cuts and sending the dollar tumbling.

The pound gained even as a survey showed British retail sales slumped this month and expectations within the industry for July also deteriorated.

Recent data reports have signalled a softening domestic economy, and traders see a 64% chance of a rate cut from the Bank of England in August. 0#GBPIRPR

The FTSE midcap index <.FTMC> climbed 0.8% to its highest close since August.

Analysts noted that domestically focused companies have been relatively insulated from trade uncertainties, while the UK remains among the few countries to have signed a trade deal with the United States.

Among companies that reported, Inchcape INCH.L gained 5.9% after the car distributor maintained fiscal-year outlook through cost-cutting measures that offset U.S. tariffs and increased competition.

Moonpig MOONM.L slumped 9.2% to touch a more than two-month low after the greeting card retailer forecast slower earnings growth and announced the departure of its CEO.

Next 15 Group NFGN.L slumped 28% after the consultancy and marketing services provider warned full-year 2026 profit would significantly miss market expectations.

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