London stocks advance as US-Iran pause lifts risk appetite; earnings add to gains

July 27 (Reuters) - London's FTSE 100 gained on Monday as a pause in U.S.-Iran hostilities over the weekend sent oil prices lower and boosted risk sentiment globally, while a decline in energy stocks capped gains.

The blue-chip FTSE 100 index .FTSE rose 0.4% to 10,781 points by 0922 GMT, while the midcap FTSE 250 .FTMC climbed 0.6%.

• The U.S. paused its attacks on Iran over the weekend, and a senior Iranian official told Reuters Tehran would do the same if the U.S. bombing pause holds.
• Oil prices tumbled more than 6% to about $90 a barrel, weighing down British energy stocks .FTNMX601010 2.5%, set for their biggest one-day drop since the beginning of the month. O/R
• Travel and leisure stocks .FTNMX405010 were among the biggest gainers with a 2.3% advance, with IAG ICAG.L up 2.8% and Premier Inn owner Whitbread WTB.L adding 2%.
• Meanwhile, quarterly earnings also gained momentum. The FTSE 350 telecom services provider index .FTNMX151020 gained 3%, helped by a 4.5% rise in Vodafone VOD.L after it raised its forecast to reflect its Safaricom deal, and said it expected to deliver results at the upper end of its new range.
• Pharma stocks .FTNMX201030 added 1.3%, with AstraZeneca rising 1.6% after it backed its annual and long-term forecasts and topped second-quarter profit expectations.
• Results from U.S. Big Tech companies, including Microsoft MSFT.O and Apple AAPL.O, will also be crucial to gauge whether the AI-driven rally is sustainable, which could set the tone for broader markets.
• Policy statements from the U.S. Federal Reserve and the Bank of England will be watched later this week for hints on the banks' next likely moves.
• Markets are pricing in at least one 25-basis-point rate increase in both economies, with an over 60% chance of a second in the U.S. and over 40% in UK, according to LSEG-compiled data.