UK stocks join global rally on optimism over trade, interest rate path

June 27 (Reuters) - The main UK stock indexes climbed on Friday, with midcaps closing at an over three-year high, driven by global optimism over earnings, trade policies and easy monetary policy.

The internationally focussed FTSE 100 .FTSE rose 0.7%, while the domestically oriented FTSE 250 .FTMC jumped 1.1% to close at its highest level since February 2022.

Markets have rebounded in recent weeks due to easing concerns over the Middle East conflict, signs of U.S.-China trade negotiations and potential for U.S. interest rate cuts. The main Wall Street indexes - the S&P 500 and the Nasdaq - touched intraday record highs on Friday, with technology stocks in the lead as soft economic data supported more rate cuts from the Federal Reserve.

Also aiding sentiment, the U.S. and China have resolved issues surrounding shipments of rare earth minerals and magnets to the U.S., Treasury Secretary Scott Bessent said , ironing out a dispute that stalled a deal reached in May.

Meanwhile, British Prime Minister Keir Starmer sharply scaled back planned welfare cuts to quell a damaging rebellion by lawmakers in his governing Labour Party. Starmer's reforms had sought to shave 5 billion pounds ($6.9 billion) per year off a rapidly rising welfare bill.

The reforms are set to be put to a vote in parliament on July 1.

JD Sports JD.L was among the top gainers on the blue-chip FTSE 100, advancing 7.6% after U.S. peer Nike's NKE.N upbeat earnings bolstered sportswear brands.

Unilever ULVR.L shares rose 1% after the Financial Times reported it was buying men's personal care brand Dr Squatch from private equity firm Summit Partners for $1.5 billion (1.09 billion pounds).

On the flip side, the FTSE 350 precious metals and mining index .FTNMX551030 dropped 4.4% as gold prices XAU= declined following a ceasefire between Iran and Israel.

Fresnillo FRES.L and Endeavour Mining EDV.L fell more than 4%, while Hochschild Mining HOCM.L lost 2.6%.

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