UK's FTSE 100 rebounds as financial, commodity stocks gain

Dec 29 (Reuters) - London's blue-chip index gained ground on Thursday, led by financial and commodity stocks, as investors parsed a mixed bag of corporate earnings.

The FTSE 100 .FTSE rose 0.5% by 1129 GMT, after finishing 0.5% lower in the previous session.

Meanwhile, the domestically focused FTSE 250 .FTMC edged 0.1% lower.

Investment banks and brokerages .FTNMX302020 were among the session's top performers, with the sector index rising 4%. 3i Group III.L surged 10.5% to lead the FTSE 100, on track for its biggest one-day gain in more than six months after the investment company delivered a strong third-quarter update.

Banking shares .FTNMX301010 rebounded from Wednesday's losses, and were up 0.9%. Lloyds Banking Group LLOY.L rose 1.2% after the bank reported a better-than-expected 12% rise in annual profit.

On the trade front, Britain's Prime Minister Keir Starmer and China's President Xi Jinping hailed a reset of ties, pledging to build an economic partnership with deals including a major investment by AstraZeneca AZN.L. The pharmaceutical giant's shares were marginally down on the day.

Back in the markets, mining stocks advanced, with the precious metal miners index .FTNMX551030 rising 3% to a record high, tracking strength in gold prices. Industrial metal miners index .FTNMX551020 climbed 3.6% to its highest level in one year. GOL/

Miner Glencore GLEN.L was up 3.8% despite reporting an 11% decline in copper production for 2025, as higher grades and improved recoveries at several mines lifted output in the second half.

Energy stocks .FTNMX601010 also advanced 1.8%, supported by higher oil prices amid rising concerns that a U.S. strike on Iran could disrupt supply. O/R

On Wednesday, the U.S. Federal Reserve left interest rates unchanged as widely expected, with Chair Jerome Powell citing a "clearly improving" outlook.

Global investors have remained focused on a packed earnings calendar this week, scrutinizing results from U.S. Big Tech firms for insights into the trajectory of AI investment.

Among other UK stocks, budget airline easyJet EZJ.L dipped 1% after it reported a wider first-quarter loss, hit by expansion costs and soft winter pricing.