* FTSE 100 up 0.4%, FTSE 250 up 0.7%
* Banks, miners top boosts
* Hargreaves Lansdown down after fund suspended
* Retailers hit after consumer spending stagnates
(Changes analyst comment, updates to closing prices)
By Muvija M and Shashwat Awasthi
June 4 (Reuters) - London's FTSE 100 rebounded on Tuesday as
China's request for dialogue with the United States to resolve
trade differences offered respite, while money manager
Hargreaves Lansdown tumbled after the suspension of one of the
Woodford investment funds.
The FTSE 100 .FTSE , which started the day in negative
territory, reversed course to end 0.4% higher, although it
lagged its European counterparts due to weakness in oil majors
Shell RDSa.L and BP BP.L .
The domestically-focused midcap index .FTMC rose 0.7%,
helped by strength in the local currency, the pound, whose gains
were prompted by the U.S. Federal Reserve opening the door to
the possibility of a rate cut.
After a slew of back and forth trade threats between the
U.S. and China, investors welcomed comments from China's
commerce ministry urging dialogue and negotiation to solve the
differences. That supported shares in Asia-focused banks including
Prudential PRU.L and Standard Chartered STAN.L , while miners
also climbed higher.
"In the era of heightened trade tensions, any language that
isn't hostile, and advocates further dialogue, is seen as a step
forward. The situation is far from diffused, but the absence of
aggression has promoted traders to snap up stocks," David
Madden, CMC Markets analyst, said.
Oil heavyweights, however, weakened as crude prices fell to
their lowest since January as Russia's top oil producer said it
opposed extending joint cuts with OPEC until the end of the
year. O/R
Hargreaves Lansdown HRGV.L tumbled 4.6%, among top losers
on the main index, after well-known money manager Neil Woodford
suspended trading in one of his funds, which is included in six
of Hargreaves Lansdown's Multi-Manager funds.
On the midcap index, shares in Woodford Patient Capital
Trust WPCT.L , a listed fund run by Woodford, slumped to an
all-time low as investors were spooked by the suspension. Stock
ended down 7.2%.
"It's been a tough few years for Woodford and things look
like they will get worse still," Markets.com analyst Neil Wilson
said.
Another stark reminder of the toll the prolonged and delayed
Brexit process is taking on consumers came from the British
Retail Consortium, whose data showed shoppers cut back spending
in May by the most in more than two decades. Shares of retailers and consumer goods companies declined in
response, with online grocer Ocado OCDO.L down 5% on the FTSE
100. Fashion retailer Ted Baker TED.L slid 2% on the mid-cap
index.
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Performance of UK fund managers over the last 2 years https://tmsnrt.rs/2WDkN1O
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