(For a Reuters live blog on U.S., UK and European stock...

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

• A.G. Barr gains on upbeat outlook
• FTSE 100 up 0.9%, FTSE 250 adds 1.5%

(Updates prices, adds comment)

Mining and banking stocks lifted London's FTSE 100 on Tuesday, with upbeat outlook from A.G. Barr contributing to the positive sentiment.

The blue-chip FTSE 100 index .FTSE gained 0.9%, with miners Anglo American AAL.L , Rio Tinto RIO.L and Glencore GLEN.L among the top gainers aided by stronger copper and gold prices.

The banking sub-index .FTNMX301010 rose 1.2%, tracking higher yields amid expectations of interest rate increases.

Two-year yields GB2YT=RR on British bonds hit their highest since 2011 amid expectations for a 50-basis-point rate hike from the Bank of England, its second increase in a row.

"Markets positioned itself for the rate hikes. Financials and materials have already benefited and have massively outperformed the rest of the markets so far this year," said Keith Temperton, sales trader at Forte Securities.

"Interest rate rises in the face of a slowdown looks like policy error about to happen, but with inflation, where it is and doing what it's doing, the central banks need to act."

The FTSE 100 has steadily outperformed its peers in the developed world due to a stronger exposure to banking stocks, which tend to thrive in a high-interest rate environment.

The domestically focused mid-cap index .FTMC was up 1.5%, with travel and leisure stocks .FTNMX405010 among the top gainers.

A.G. Barr BAG.L gained 2% after it raised its annual profit forecast on Tuesday and said annual revenue was set to top pre-pandemic levels after it enjoyed strong sales of soft drinks like Irn-Bru.

Virgin Money UK VMUK.L rose 0.2%, after the British challenger bank increased its annual net interest margin outlook, as it benefits from higher-yielding lending on the back of rising interest rates.

Cineworld CINE.L fell 0.6% after it said it had started talks with former shareholders of its U.S. business Regal Entertainment over a potential rescheduling of the British cinema operator's payment obligations.

((  
For related prices, Reuters users may click on - *  

UK stock report 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   
 * For related news, click on - * 

 UK hot stocks:		 and		Wall Street:			 
 Gilts report:					 Euro bond report	

Pan European stock report: Tokyo stocks: HK stocks: Sterling report: Dollar report:

• For company prices, click on - * Company directory: UKEQ By sector: FTAX

 European Equities speed guide................  EUR/EQUITY   

FTSE Eurotop 300 index........................... .FTEU3 DJ STOXX index................................... .STOXX Top 10 STOXX sectors........................ .PGL.STOXXS Top 10 EUROSTOXX sectors................... .PGL.STOXXES Top 10 Eurotop 300 sectors.................. .PGL.FTEU3S Top 25 European pct gainers.................... .PG.PEUR Top 25 European pct losers..................... .PL.PEUR ))