* FTSE 100 up 1%, FTSE 250 up 0.5%
* Easing trade sentiment lifts mood
* Pearson tanks after profit warning
* Imperial Brands falls after forecast cut, drags BAT
* IAG down after saying pilot strikes to hit profit
(Adds news items, analyst comments, updates share prices)
By Shashwat Awasthi and Muvija M
Sept 26 (Reuters) - London's FTSE 100 surged more than 1% on
Thursday as signals from the United States and China that their
trade dispute could soon be put to bed did enough to counteract
a trio of profit warnings from blue-chip components.
The FTSE 100 added 1.1%, rebounding after four
straight sessions in the red, after China's commerce ministry
said it was is in close communication with Washington over next
month's trade talks, and President Donald Trump said overnight
that a deal could be struck soon.
Gains were shared among oil majors ,
financials and miners, which, along with a dip in sterling, put
the index on track for its best day in more than five weeks and
helped it outperform the broader European index.
China's conciliatory statement also offset losses in tobacco
firm Imperial Brands, education company Pearson and British
Airways owner IAG, all of which warned on results and together
wiped off more than roughly 4 billion pounds in market value
from the index by 0849 GMT.
"Following yesterday's positive session in the U.S., there
seems to be a bit more optimism, but it's pretty fragile,"
Markets.com analyst Neil Wilson said. Spreadex analyst Connor
Campbell said Trump's trade remarks were outweighing any other
"destabilising factors" surrounding his presidency.
The mid-cap FTSE 250 rose after three consecutive
sessions of losses but was only up 0.5% by 0904 GMT, with gains
kept in check by a weaker sterling as the Brexit malaise showed
no signs of easing up.
"A testy session for MPs (members of parliament) yesterday
sets the tone for the run in to the Brexit deadline. No-deal
remains on the table," Markets.com analyst Neil Wilson said.
TRIFECTA OF PROFIT ALERTS
Positive comments around global trade helped the blue-chip
index recover from earlier losses that were partly triggered by
a drop in tobacco stocks after blu e-cigarette maker Imperial
Brands cut its annual sales and profit view.
Imperial's stock tumbled more than 10% to its lowest
since January 2011 and was on track for its biggest one-day drop
ever. Shares of rival BAT shed 2.2%.
"...Hopes had been high that the vaping segment would drive
growth as traditional tobacco declines. Increased regulatory
scrutiny and retailers reluctant to stock vaping products is
seriously undermining that hope," Hargreaves Lansdown analysts
said.
Pearson slid almost 18% to its lowest since March
2018 after saying full-year profit would be at the bottom of its
guided range, while IAG also dipped 3% after blaming
pilot strikes for an expected 215 million euros shortfall in
annual profit.
Among smaller stocks, inkjet printhead maker Xaar
tanked almost 40% after half-year results. Its shares have
already lost more than two-thirds in value this year.
(Reporting by Shashwat Awasthi in Bengaluru; Editing by Toby
Chopra and Peter Graff)
