UK's FTSE 100 rises on commodity stocks rally, Compass earnings boost

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

* Compass Group tops FTSE 100 on share buyback, outlook

* TP ICAP's revenue rises as volatility drives trading

* UK to enter recession this year, think-tank forecasts

* FTSE 100 and FTSE 250 both up 1.4% each (Updates to close)

By Bansari Mayur Kamdar

May 11 (Reuters) - Britain's FTSE 100 ended higher on Wednesday as energy and mining shares rallied on the back of higher commodity prices and Compass Group posted a strong earnings report.

The blue-chip FTSE 100 .FTSE closed 1.4% higher to record its best session in more than a month while the domestically focused mid-cap index .FTMC also advanced 1.4%.

Miners .FTNMX551020 climbed 3.9% as metal prices rose on signs of lower domestic COVID-19 infections in China.

Oil majors Shell SHEL.L and BP BP.L rose nearly 3.7%, each tracking a recovery in crude prices on supply concerns and expectations that Beijing would provide more economic stimulus after China's factory-gate inflation eased.

Compass Group CPG.L jumped 7.4% to the top of the index, after the catering company raised its annual revenue forecast and announced a 500 million pound ($616.65 million) share buyback following a strong first half.

"A lot of corporates so far have been pretty successful in passing on the higher costs to consumers and we've seen UK stocks being relatively attractive because they are relatively cheap and you're still earning a decent return," said Stuart Cole, head macro economist at Equiti Capital.

"However, if you look at the BRC (British Retail Consortium) figures this week they are showing that consumers are starting to curtail their spending as the cost of living crisis bites and real income is severely eroded."

An economic think-tank said Britain was on course to enter a technical recession in the second half of this year and faced a big hit to living standards from surging prices.

Nevertheless, the FTSE 100 has outperformed its pan-European peers so far this year, helped by a jump in commodity stocks due to a surge in metal and oil prices amid the geopolitical tensions.

Among other individual shares, TP ICAP TCAPI.L gained 2.7% as the inter-dealer broker said its first-quarter revenue rose 14% as heightened market volatility spurred global trading opportunities.
Reporting by Bansari Mayur Kamdar and Amal S in Bengaluru; Editing by Uttaresh.V and Alison Williams

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