UPDATE 2-Lloyds, WPP drive FTSE 100 higher; Fed outcome eyed

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* Lloyds gains as Q1 profit jumps

* FTSE 100 up 0.3%, FTSE 250 flat
(Adds comment, details; updates prices)

By Devik Jain and Medha Singh

April 28 (Reuters) - London's FTSE 100 climbed on Wednesday,
lifted by energy shares and a slew of upbeat earnings updates
from companies including Lloyds Banking Group and WPP as
investors awaited the U.S. Federal Reserve's policy statement.

The blue-chip index rose 0.3%, with oil heavyweights
BP Plc and Royal Dutch Shell Plc providing the
biggest boost as oil prices firmed.

WPP rose 2.8% after the world's biggest advertising
company said its underlying net sales returned to growth as
clients started to spend to prepare for the global economic
recovery.

Lloyds Banking Group added 3.5% after Britain's
biggest domestic bank reported upbeat profit for the first three
months of the year.

The wider banking index added 1.4%, rising
for the fifth straight session with Barclays and
Natwest Group rising ahead of their earnings reports
this week.

Worlds stocks neared record highs as focused shifted to the
Fed's statement which is expected to reiterate the U.S. central
bank's pledge of monetary support for some time while awaiting
results from heavyweights Apple Inc and Facebook Inc
.

"Powell will need to continue walking the fine line between
sounding optimistic whilst reining in expectations," said Fiona
Cincotta, senior financial markets analyst at City Index in
London.

The FTSE 100 has gained about 8% year-to-date on optimism
that speedy COVID-19 vaccinations and constant policy support
from the government would drive a stronger economic recovery.

The domestically focused mid-cap FTSE 250 index
ended nearly flat.

Reckitt Benckiser Group dropped about 4% as a weak
flu season saw fewer people reach for cold remedies and
declining birth rates hit sales of baby formula products. Still,
the company posted better-than-expected quarterly
sales.
(Reporting by Devik Jain and Medha Singh in Bengaluru; Editing
by Alison Williams)