• FTSE 100 up 0.2%, FTSE 250 adds 0.4%

Sept 13 (Reuters) - Mining stocks lifted London's blue-chip index on Friday as investors raised their bets of a hefty U.S. interest rate cut next week, but gains were limited as a strong pound weighed on export-oriented companies.

The FTSE 100 (.FTSE) , opens new tab edged up 0.2%, while the mid-cap FTSE 250 (.FTMC) , opens new tab firmed 0.4%, aiming for its first weekly gain in three.

Precious metal miners Fresnillo (FRES.L) , opens new tab, Endeavour (EDV.L) , opens new tab and Centamin (CEY.L) , opens new tab firmed about 2% each as gold scaled a record high against a weaker greenback.

Industrial metal miners (.FTNMX551020) , opens new tab rose 0.9% as copper prices rose to a two-week high on expectations of fiscal support from in top consumer China.

The sterling touched a one-week high against the U.S. dollar after the Wall Street Journal and the Financial Times reported it might be a close call on whether the U.S. Federal Reserve cuts rates by 25 basis points or by 50 bps at its meeting next Wednesday.

That prompted traders to boost their expectations of a steeper 50 bps rate cut to 43% from just 14% a day earlier, according to CME's FedWatch tool.

An influential former New York Fed President, Bill Dudley, later said, "there's a strong case for 50".

Investors are also gearing up for the Bank of England's policy meeting next week, at which it is expected to stand pay, according to all 65 economists in a Reuters poll.

The BoE meeting, however, will be parsed for clues about future moves as well as a decision over the pace of its bond sales -- a hot political topic. The central bank last month eased interest rates by 25 bps to 5% from a 16-year high.

Among other stocks, Vodafone's (VOD.L) , opens new tab $19 billion merger with Three UK could push up bills for millions of mobile customers, Britain's competition regulator said. Vodafone shares rose 0.2%.

Flutter Entertainment (FLTRF.L) , opens new tab edged lower after the Irish betting giant said it will buy a 56% stake in NSX Group, the operator of Brazilian gaming group Betnacional, for about $350 million.

(This story has been refiled to correct syntax in the headline)

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https://www.reuters.com/world/uk/mining-stocks-pushes-export-heavy-ftse-100-higher-strong-pound-keeps-gains-check-2024-09-13/