FTSE 100 up 0.9, FTSE 250 adds 0.4
Energy shares lead gains, oil up by over 1 per barrel
HSBC plans 3 bln share buyback, shares rise
U.S. Fed rate decision in focus

July 31 Reuters London39;s FTSE 100 recovered on Wednesday, supported by gains in energy stocks and positive corporate updates, while investors eagerly awaited the U.S. Federal Reserve39;s interest rate decision.

The bluechip FTSE 100 index gained 0.9, after it logged its worst day in a week on Tuesday.

The midcap FTSE 250 index added 0.4 by 0707 GMT.

Both indexes are set to log monthly gains, with the FTSE 250 eyeing its best this year.

Investors39; focus is now trained on the Fed39;s monetary policy decision due later in the day, which could influence the outlook on rate cuts globally.

Though the Fed is widely expected to hold rates, markets are anticipating hints for a September cut, after recent data supported the trend of cooling inflation in the eocnomy.

In London, energy shares led broader gains with a 1.8 rise, as the index rebounded from Tuesday39;s losses.

Top players like BP and Shell gained more than 1.4 each, after the killing of Hamas39; leader ratcheted up tensions in the Middle East and pushed oil prices higher by more than 1 per barrel.

Industrial metal miners also inched 1.3 higher as prices of most base metals firmed.

HSBC climbed 2.3 after the bank pledged to buy back 3 billion in shares, and reported stable firsthalf profit that beat estimates.

It propelled banks 1.5 higher…