UK stocks clock weekly gains on US-Iran ceasefire, focus on peace talks

April 10 (Reuters) - The main ​UK stock ⁠indexes recorded weekly gains after an ​agreement between the United States and Iran on a two-week ceasefire sent global stocks surging earlier this ​week, ‌with the focus now on peace talks over the weekend.

The blue-chip FTSE 100 ⁠index ended flat at 10,600.5 points on the ⁠day, clocking its third straight ​weekly gain. The midcap FTSE 250 climbed 0.7%, recording its second consecutive week of gains.

* Global stocks were sanguine as traders awaited the outcome of U.S.-Iran peace talks set ​to ‌be held in Pakistan's capital, Islamabad, on Saturday.

* The Strait of Hormuz remained shut on Friday and Israel traded fire with Hezbollah in Lebanon, which the United States and Iran each described as violations of their ceasefire deal.

* Stocks ​rebounded earlier this week as oil prices slid following the announcement of a ‌two-week ceasefire, raising hope of a revival in shipping through the strait.

* However, the flow of oil from the ‌Gulf remains heavily restricted, keeping futures prices near $100 a barrel.

* On the data front, U.S. consumer prices increased by the most in nearly four years, though an ​underlying measure of inflation that excludes the volatile food and energy components rose only moderately last month.

* AO ‌World gained 7% after the British electronics retailer said it expected annual profit at the top end of its forecast range, after gaining market share across all key ⁠categories ⁠in its consumer-focused business.

* B&M's shares fell 4.6% as interim ‌CFO Helen Cowing left the British discount retailer after less than five months in the job, the ​company said.

* Defence ​contractor BAE Systems shed 3.3%, while airline Wizz Air ‌surged 7.2% after a Bloomberg report said Ukraine's top negotiator with Russia saw progress towards a potential peace deal with Russia. (Reporting by Sruthi Shankar and Shashwat Chauhan in Bengaluru; Editing by Vijay Kishore and Christina Fincher)

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