* FTSE 100 up 1%, FTSE 250 up 0.8%
* Exporters gain as pound drops
* Persimmon rises on Jefferies upgrade
(Adds news items, analyst comment, updates to closing prices)
By Yadarisa Shabong and Muvija M
Sept 27 (Reuters) - London's FTSE 100 index hit a
near-two-month high on Friday, outperforming European peers, as
exporters were bolstered by an ailing pound after a Bank of
England policymaker hinted at an interest rate cut, while hopes
of a U.S-China trade deal also lifted the mood.
The globally-exposed FTSE 100 jumped more than 1%,
surprisingly ending the week in the black thanks to substantial
gains in the last two sessions.
A lack of any major chipmaker presence shielded the index
from a profit warning from Nasdaq-listed Micron Technology
, helping it outperform European's main index.
The domestically-focused FTSE 250, which had broken
ranks with sterling, rose 0.8%.
In a first clear sign that the BoE is considering a cut,
policymaker Michael Saunders said it may need to cut interest
rates in the likely scenario that high levels of uncertainty
over Brexit persist.
"This is significant as Saunders has traditionally been a
hawkish voice on the Monetary Policy Committee," CMC Markets
analyst Michael Hewson said.
Even as the Oct. 31 Brexit deadline approaches, very little
is clear about how or even whether the UK will leave the
European Union. Prime Minister Boris Johnson is in a standoff
with parliament after vowing to Britain out of the bloc on Oct.
31, with or without a deal.
As a weaker pound boosts the value of exporters' revenue
from overseas, international companies such as oil majors Royal
Dutch Shell and BP and Asia-facing lender HSBC
were the biggest boost on the main index.
Hopes that a drawn-out China-U.S. trade dispute might be
nearing a solution also helped sentiment after China said on
Thursday it was in close communication with the United States
over trade talks next month.
Gains of roughly 1% in the last two sessions helped the FTSE
100 recoup some of the losses seen in August, when it suffered
its worst monthly fall since October last year due to heightened
concerns over global trade and recession.
Friday's surge has put the index course for its biggest
monthly gain since April, albeit a flat quarter.
Leading gains on the main index, Britain's second-largest
homebuilder, Persimmon, jumped 5.2% after the brokerage
Jefferies said Brexit risks had been overplayed in the sector,
and upgraded the stock.
A sub-index of housebuilders touched its
highest level in almost a year.
Offshore oilfield services contractor Gulf Marine
pared earlier gains to end 2% up after signing a deal with
lenders to provide cash till year-end, while mid-cap utility
Pennon Group scaled a more than one-year high after
maintaining targets.
(Reporting by Indranil Sarkar and Muvija M and Shashwat Awasthi
in Bengaluru; Editing by Bernard Orr and Kevin Liffey)
