FTSE 100 outperforms European peers on strong earnings, upbeat GDP data

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* FTSE 100 up 0.3%, FTSE 250 adds 0.4%

May 12 (Reuters) - London’s FTSE 100 rebounded on Wednesday, supported by positive earnings updates from companies including Diageo, while stronger-than expected monthly GDP data bolstered optimism about a sharp recovery from the pandemic-driven slump last year.

The blue-chip index rose 0.3%, with spirits maker Diageo adding 2.7% after it forecast organic operating profit growth to be at least 14% in its current fiscal year and restarted its capital return programme.

Catering company Compass Group rose 1.9% as it said its fiscal third-quarter margins would improve sequentially, supported by cost-cutting measures, after reporting a slight profit and revenue beat in the first half.

The domestically focused mid-cap FTSE 250 index advanced 0.4% after official data showed Britain’s economy grew by 2.1% in March from February led by the retail sector.

Globally, stocks extended a sell-off from the previous session as investors braced for U.S. consumer price index report with market-based measures of inflation expectations having moved higher.

UDG Healthcare jumped 22.2% after private-equity firm Clayton, Dubilier & Rice (CDR) agreed to buy the pharmaceuticals services company for 2.6 billion pounds ($3.7 billion). (Reporting by Devik Jain in Bengaluru; Editing by Subhranshu Sahu)