Banks support FTSE 100 ahead of Fed decision

Dec 10 (Reuters) - Britain's blue-chip FTSE 100 edged up on Wednesday, supported by gains in banking stocks as investors awaited the U.S. Federal Reserve's interest rate decision.

The FTSE 100 .FTSE closed up 0.1%, while the domestically focussed FTSE 250 index .FTMC dipped 0.4% to a two-week low.

Lenders HSBC HSBA.L and Standard Chartered STAN.L rose 3.2% and 2.2%, respectively, following bullish recommendations from BofA Global Research.

The FTSE 350 banks index .FTNMX301010 rose 1.8% and led gains among the sectors.

The Fed is widely expected to cut interest rates by 25 basis points to the 3.50%-3.75% range, but may signal a non-committal or even hawkish approach to next year's rate path given the division among policymakers.

The decision is due at 1900 GMT.

Traders are also looking ahead to UK GDP data for October on Friday. Signs of easing inflation and a weakening labour market have pushed traders to price in a 25 bps rate cut from the Bank of England next week, with further cuts seen next year.

Among other stocks, Pearson PSON.L climbed 2% after J.P. Morgan named the education company one of its top picks in the media sector.

FirstGroup FGP.L added 5% after the transport operator was named the preferred bidder for London's Overground suburban rail network in a contract worth about 3 billion pounds ($4 billion).

Berkeley BKGH.L rose 3.2% after the homebuilder maintained its annual guidance and voiced confidence in the long-term outlook for London, its key market.

Evoke EVOK.L surged 14% after the William Hill UK and 888 owner said it was reviewing strategic options including a potential sale, just weeks after tax hikes on online gaming and sports betting forced it to withdraw its financial guidance.

($1 = 0.7502 pounds)