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FTSE 100 up 0.2%, FTSE 250 rises 0.3%
Burberry gains after HSBC raises PT
Diageo shares fall as UBS cuts target price
Updates after markets close
Dec 4 (Reuters) - UK stocks edged higher on Thursday, boosted by gains in industrials and financials shares, while investors assessed corporate updates and economic data ahead of the U.S. Federal Reserve's rate decision next week.
The blue-chip FTSE 100 .FTSE closed 0.2% higher, while the midcap FTSE 250 .FTMC added 0.3%.
Aerospace and defence shares .FTNMX502010 gained for a third straight session, up 2.5%, after Russia-Ukraine peace talks stalled. Rolls-Royce RR.L and BAE Systems BAES.L gained about 2.6% each.
The investment banks and brokerages .FTNMX302020 sector rose 2.2%. Investment firm 3i Group III.L increased 5.1%, to top the FTSE 100 index.
Personal goods .FTNMX402040 rose 2.8% with Burberry BRBY.L gaining 3% after HSBC raised the price target on the stock.
On the flip side, beverages .FTNMX451010 dropped 2.9%, with Diageo DGE.L falling 3.9% after UBS downgraded the stock and cut the target price.
Pharma .FTNMX201030 stocks declined nearly 1%. AstraZeneca AZN.L dipped 1.3%.
SSP Group SSPG.L advanced 11.3% after the airport outlet operator said it expects annual profit at the top end of its forecasts.
AJ Bell AJBA.L fell 7.6% after the investment platform warned of added costs and said the budget would add complexity to the individual savings account landscape.
Frasers FRAS.L fell 2.7% after the sportswear and fashion retailer reported a 2.8% drop in first-half profit.
Meanwhile, a survey showed British construction activity contracted last month at the fastest pace since May 2020.
Other surveys showed similar concerns about investment, hiring and demand in the lead-up to finance minister Rachel Reeves' annual budget on November 26.
British investors sold equities worth 3 billion pounds in November, marking the sixth consecutive month of net selling, according to data from funds network Calastone.
In the U.S., data showed the number of Americans filing new applications for unemployment benefits dropped last week to the lowest level in more than three years.
(Reporting by Utkarsh Tushar Hathi in Bengaluru; Editing by Vijay Kishore and Ed Osmond)
((utkarshtushar.hathi@thomsonreuters.com))