Updates after market close

By Sanchayaita Roy

May 28 (Reuters) - Britain's benchmark share index closed lower on Wednesday, while mid-caps were steady, as investors parsed a mixed bag of corporate earnings.

The blue-chip FTSE 100 .FTSE was down 0.6% and the midcap index FTSE 250 .FTMC edged up just 0.04%.

The FTSE 100 has gained 2.7% so far in May, heading for its best month in four. The domestically-focused 250 index is up 5.3% this month and set for its best month in ten.

U.S. deals with the UK and China have eased trade concerns and boosted sentiment towards risk assets.

The International Monetary Fund on Tuesday increased its growth forecast for Britain to 1.2% from its previous forecast of 1.1% in April, with expectations of a rise to 1.4% in 2026 despite U.S. tariff headwinds.

"The UK has been relatively well insulated, given what's been happening on a global trade basis," said Richard Bullas, fund manager at Franklin Templeton, adding that recent trade developments have shone the spotlight on domestic companies rather than the international giants in the FTSE 100.

"With inflation starting to trend back down and the Bank of England poised to cut rates, we expect that falling rate expectations will be a real catalyst for renewed business activity and a re-rating of domestic stocks," he said.

Shares of home improvement retailer Kingfisher KGF.L fell 3.6% after it reported results on Wednesday, while data analytics and consulting company GlobalData DATA.L was down 1.6% after extending the deadline for private equity firm ICG ICGIN.L to offer a takeover bid. It also ended talks with KKR KKR.N after failing to reach an agreement.

The industrial metal miners sub-index .FTNMX551020 was the biggest sectoral faller, down 1.3% as it tracked lower copper prices. MET/L

British grocery price inflation jumped to its highest level since February last year, adding pressure on consumers, data showed.

Global markets were focused on AI chipmaker Nvidia's NVDA.O quarterly results, due after the close of trading on Wall Street.

(Reporting by Sanchayaita Roy and Twesha Dikshit in Bengaluru; Additional reporting by Johann M Cherian; Editing by Kirsten Donovan For related prices, Reuters users may click on - * UK stock report .L FTSE index: 0#.FTS6 techMARK 100 index: .FTT1X FTSE futures: 0#FFI: Gilt futures: 0#FLG: Smallcap index: .FTSC FTSE 250 index: .FTMC FTSE 350 index: .FTLC Market digest: .AD.L Top 10 by vol: .AV.L Top price gainers: .NG.L Top % gainers: .PG.L Top price losers: .NL.L Top % losers: .PL.L

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((Twesha.Dikshit@thomsonreuters.com))