Global trade optimism boosts FTSE 100; Plus500 tanks
* FTSE 100 up 0.4 pct
* FTSE 250 up 0.2 pct
* Plus500 slumps after profit warning, drags down rival IG
Feb 12 (Reuters) - Britain's FTSE 100 rose on Tuesday as astronger dollar boosted big banks and other companies thatderive much of their revenue from overseas, in a broad-basedequity rally across Europe.
Trading platform Plus500, however, plunged by more than 30percent after warning it would miss results expectations due toa regulatory crackdown.
The FTSE 100 .FTSE was up 0.4 percent, with optimism overprospects for U.S.-China trade talks this week also spillingover to Europe, after lifting markets in Asia and on WallStreet. urn:newsml:reuters.com:*:nL3N20614C
Banks .FTNMX8350 and consumer staples, which make a bigchunk of their money abroad, led the gains, and oil majors alsogained on the back of higher crude prices.
Market sentiment was also lifted after U.S. lawmakers strucka tentative agreement to avert another government shutdown. urn:newsml:reuters.com:*:nL1N2060IA
Industrial stocks helped the FTSE 250 .FTMC move 0.2percent higher, but gains were capped by Plus500'sPLUSP.L plunge, which accounted for a 30-point drop on the index.
Plus500 lost more than a third of its value after the onlinetrading platform forecast 2019 results will be below marketexpectations, hurt by a regulatory crackdown in the EuropeanUnion on the sale of certain financial products to retailclients. urn:newsml:reuters.com:*:nL3N2072F2
The stock was last down 30 percent, on track for its worstday in more than three-and-a-half years, and dragged rival IGGroup IGG.L down 5 percent.
Investors were also cautious ahead of a parliamentaryaddress by Prime Minister Theresa May later in the day as shestruggles to seal a Brexit deal.
"There is continued optimism that some sort of a deal willbe reached even though we have no concrete reason to believethat is going to be the case," said CMC Markets analyst DavidMadden.
"Some people are suggesting that May is intentionallyrunning down the clock and trying to coerce some of her MPs intovoting for her deal just because it might be better thanno-deal," Madden added.
On the blue chip index, miners .FTNMX1770 rose afterGoldman Sachs said European commodities and mining equities were"attractively positioned".
Tour operator TUI TUIT.LTUIGn.DE , which has slumpedsince a profit warning last week, was down 4 percent as itsfirst-quarter underlying loss widened. urn:newsml:reuters.com:*:nL9N1Y105P
Small-cap retailer DebenhamsDEB.L shot up 38 percentafter it secured additional funding from lenders as it strugglesto find a longer-term solution to its financial woes. urn:newsml:reuters.com:*:nL3N2072GI
"While this (refinancing) takes away the immediate pressureand provides a short respite, we believe Debenhams is likely tomove forward with a CVA (credit valuation adjustment) in orderto reduce its lease commitments and store numbers," said JohnStevenson, retail analyst at Peel Hunt. (Reporting by Shashwat Awasthi and Tanishaa Nadkar; Additionalreporting by Muvija M in Bengaluru; Editing by Josephine Masonand Susan Fenton) ((Shashwat.Awasthi@thomsonreuters.com; within U.S.+1 646 2233403; outside U.S. +91 80 6749 3403; Reuters Messaging:firstname.lastname@example.org))
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