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

Updated at 1600 GMT

By Khushi Singh and Medha Singh

Sept 13 (Reuters) - Precious metal miningstocks lifted London's blue-chip index on Friday as investors raised their bets ona hefty U.S. interest rate cut next week, but gains were limited as a strong pound weighed on export-oriented companies.

The FTSE 100 .FTSE edged up 0.4%, while the mid-cap FTSE 250 .FTMC rose 1%. Both stock indexes registered a weekly advance, led by an over 19.5% rise in precious metal mining .FTNMX551030 stocks over the week.

The index climbed over 6.8% to its highest level in over 15 months. Gold miners Fresnillo FRES.L and Endeavour EDV.L firmed 5.7% and 10.5%, respectively,as gold scaled a record high against a weaker greenback. GOL/

Gold prices rose as optimism about the Federal Reserve cutting U.S. interest rates increased, driven by fund inflows and a weaker dollar.

Beverages .FTNMX451010 were the top sectoral decliners, down 1.2% after the Italian spirits group Campari CPRI.MIwarned about a "very soft" environment for the industry in the current quarter. UK peer Diageo DGE.L slipped 1.4%.

Sterling GBPUSD= touched a one-week high against the dollar after the Wall Street Journal and Financial Times reported it might be a close call on whether the Fed cuts rates by 25 basis points or by 50 bps at its meeting next Wednesday.

That prompted traders to boost their expectations of a steeper 50 bps rate cut to 43% from just 14% a day earlier, CME's FedWatch tool showed.

Meanwhile, the British public's expectations for inflation over the coming year dropped to their lowest in three years in August, likely reassuring policymakers ahead of next week's interest rate decision.

The Bank of England is expected to keep rates on hold in its upcoming meeting, according to a Reuters poll of economists.

Among other stocks, Vodafone VOD.L rose 1.1% on expectations that the telecom provider's merger with Three UK could winregulatory approval if they can guarantee the $19 billion deal will be good for consumers.

Flutter Entertainment FLTRF.L shares edged up 1.4% after the Irish betting giant said it will buy a 56% stake in NSX Group, which operatesBrazilian gaming group Betnacional, for about $350 million.

Reporting by Khushi Singh, Medha Singh in Bengaluru; Editing by Savio D'Souza and Richard Chang

 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 * For related news, click on - * UK hot stocks: HOT and GB Wall Street: .N Gilts report: GB/ Euro bond report GVD/EUR Pan European stock report: .EU Tokyo stocks: .T HK stocks: .HK Sterling report: GBP/ Dollar report: USD/ * For company prices, click on - * Company directory: UKEQ By sector: FTAX * For pan-European market data, click on - * 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