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* FTSE 100 up 1.1 pct
* FTSE 250 up 0.1 pct
* BP jumps 4.2 pct after Q4 results
* Ocado reverses course to be up
* Indivior tanks on warning of mkt share losses(Adds analyst comment, PMI data, graphic, updates share moves)
Feb 5 (Reuters) - British blue chip shares hit their highestin more than two months on Tuesday after heavyweight BP doubledits annual profit and miners rallied on higher iron ore prices,feeding into an upbeat mood on global markets.
London's main index rose 1.1 percent by 0943 GMT,hitting levels not seen since Dec. 3 and extending gains assterling weakened.
The index of midcaps was more subdued, up just 0.1percent.
A dip in the pound generally boosts the main index, whichearns a lion's share of its earnings abroad. All sectors on theFTSE 100 were in the black by 0948 GMT.
Sterling's weakening, to near two-week lows, was not goodnews for domestically oriented companies, however, as it came inreaction to a survey showing dominant services sector firmsreported job cuts for the first time in six years.
That signalled further risks to Britain's economy althoughretailers were lifted by data showing a pickup in consumerspending last month.
Asian markets extended gains on Tuesday as overnightstrength on Wall Street and the U.S. Federal Reserve's cautiousturn supported appetite for riskier assets.
On Britain's main index, oil major BP gained 4.2percent - on course for its best day since September 2016 -after full-year numbers topped expectations.
Mining stocks hit their highest since late Junelast year after Brazil ordered top producer Vale to shut itstailings dams following the deadly incident last week, raisingconcerns about falling output. Singapore iron ore futureswere up 3.4 percent overnight.
Online retailer Ocado, among last year's bestperforming stocks, shed early losses to rise 1 percent despiteresults showing investment hit earnings.
Drugmaker Indivior, however, sank as much as 25 percent onnews of a loss in its fight against generic competitors in aU.S. court.
Retail stocks were in favour as a surveyshowing British consumers picked up the pace of their shoppingin January offered some respite to a sector that suffered itsworst Christmas in a decade. Marks & Spencerwas 1.2 percent higher.
Prime Minister Theresa May headed to Northern Ireland onTuesday, promising to find a solution to the border issue at thecentre of her Brexit headaches.
German Chancellor Angela Merkel on Monday called for a"creative" compromise to future Irish border arrangements onMonday and she said in Tokyo that there was "still time" for asolution.
Chief EU negotiator Michel Barnier said the EU would notreopen its Brexit Withdrawal Agreement, but that alternatives tothe controversial Irish backstop could be worked on afterBritain leaves the bloc.
"We have been mercifully free of any Brexit discussion sofar but the clock is ticking on that... I am not sure they seeeither side giving way which would make life a lot moredifficult in the near term," said Chris Beauchamp, analyst atIG.
"I think we are having a calm before the storm which couldeasily start from next week."
If May fails to get parliament's approval for a revised dealon Feb. 13, lawmakers will vote on next steps on Feb. 14.
(Reporting by Muvija M and Shashwat Awasthi in Bengaluru;editing by Josephine Mason and Susan Fenton)
