By Shashwat Awasthi and Muvija M
(Reuters) - Britain's FTSE 100 rose on Tuesday on hopes Beijing will take steps to stabilise a slowing economy, while mid-caps edged up in choppy trade as investors remained cautious ahead of a crunch vote on British Prime Minister Theresa May's Brexit plan.
The FTSE 100 (FTSE) closed up 0.6 percent, while the more domestically-exposed FTSE 250 (FTMC) wobbled back and forth through the session but ended 0.1 percent higher.
Still, volumes on the UK indexes were below their long-term averages. The neighbouring Irish bourse (ISEQ), a barometer of Brexit fears, fell 0.5 percent.
British lawmakers appeared set to reject May's plan, and a heavy defeat could force her to delay Britain's scheduled departure from the European Union on March 29. It could also open up other options ranging from a second referendum to leaving the EU with no deal.
"Of course, we could get a situation where the vote gets passed, but given the polling numbers that looks about as likely as finding a unicorn," said CMC Markets analyst Michael Hewson.
Raymond James analyst Chris Bailey said "the market is still a slave to Brexit newsflow and clearly multiple future scenarios exist, albeit that a 'soft' or delayed Brexit has become much more likely than the more apocalyptic 'no-deal' scenario."
A stronger dollar aided more internationally-inclined stocks such as GlaxoSmithKline (L:GSK), Diageo (L:DGE) and Reckitt Benckiser (L:RB) to be among the top boosts to the FTSE 100, whose members make about 70 percent of their income abroad.
UK stocks remained the least favoured among fund managers, a Bank of America (NYSE:BAC) Merrill Lynch's January fund manager survey found.
Oil majors and miners (FTNMX1770) also supported the main index after China signalled more growth-boosting steps and oil prices rose amid supply cuts.
Homebuilders, among the most exposed to Brexit uncertainty, ended in the red, with Barratt (L:BDEV) dropping 1.8 percent. Britain's second-biggest housebuilder Persimmon (L:PSN) also fell, despite a bright trading update.
Gambling firms fell after the U.S. Department of Justice hinted at wider restrictions on all gambling on the internet. 888 Holdings (L:888) tumbled 7.5 percent and GVC (L:GVC) was the biggest faller on the main index.
Earnings drove direction among the top mid-cap movers.
Spirent Communications (L:SPT) surged 14 percent to its highest level in nearly five-and-a-half years after forecasting full-year profits that exceeded expectations.
But profit warnings sent sub-prime lender Provident Financial (L:PFG) plunging 20 percent to its worst day since August 2017 and Spire Healthcare (L:SPI) down 12 percent.
Online fashion retailer Boohoo (L:BOOH) shed 9 percent as investors chose to focus on a lack of forecast for higher profit margins over a hike in full-year sales guidance.
Flybe (L:FLYB) sank 40 percent on the small-cap index. Britain's biggest domestic airline agreed to sell some assets and got a revised bridge loan in relation to a takeover offer by a consortium.
Graphic: UK indexes & GBP since 2016 - https://tmsnrt.rs/2RSQykU