FTSE 100 up 0.4, FTSE 250 off 0.1
Pharmaceutical and medical equipment stocks jump
Ashmore records further 2 bln net outflows in Q4, shares tumble

July 12 Reuters London39;s FTSE 100 stock index hit a oneweek high on Friday amid broader gains, as investors cheered growing bets of a September interest rate cut by the Federal Reserve after a surprise fall in U.S. inflation data.

The bluechip FTSE 100 index was up 0.4, while the domesticallyfocused midcap FTSE 250 inched down 0.1 as of 0717 GMT, after closing at a more than twoyear high on Thursday.

Both indexes are on track to log their second weekly gains.

Investor sentiment was buoyed globally by increased bets of an interest rate cut by the Fed in September, after data showed a surprise drop in U.S. consumer prices for June on Thursday.

London39;s pharmaceutical and biotech stocks rose 1.4, while medical equipment and services shares gained 0.7. The sectors were set to extend their rallies to a third and eighth session, respectively.

Heavyweight banks gained 0.7. Energy shares advanced 0.4 on higher oil prices but were poised to lag their peers this week.

Precious metal miners sunk to the bottom with a 0.6 decline in tandem with gold prices.

The market39;s focus is now on the producer prices data in the U.S. that could further strengthen the case for rate cuts in September.

As another earnings season commences in major economies, investors will keep an eye on quarterlty results to gauge the state of…