* FTSE 100, 250 up 0.8 pct
* DS Smith rises after rival Smurfit Kappa's results
* Rolls-Royce higher after rating upgrade
* Whitbread up after increasing buyback plans (Adds quote, updates to closing prices)By Muvija MFeb 13 (Reuters) - Britain's FTSE 100 climbed to its highestin over four months on Wednesday as miners gained and upbeatearnings lifted packaging firms DS Smith and Smurfit Kappa,while reports Brexit could be delayed eased some fears of adisruptive no-deal exit.The FTSE index increased 0.8 percent after touchingits highest level since Oct. 10, handily outperforming itsEuropean peers, while the midcaps were also up 0.8percent.But trading was limited with FTSE 100 turnover at 71 percentof the average 90-day daily volume while the FTSE 250's stood attwo-thirds of the average.British lawmakers will face a choice between Prime MinisterTheresa May's divorce deal or a long extension to the March 29deadline for leaving the European bloc, May's chief Brexitnegotiator Olly Robbins was overheard saying in a Brussels bar. The fifth-largest economy's exit remains unclear with justweeks until the March deadline with May set to return toparliament on Thursday to seek renewed backing for her plan torenegotiate her Brexit deal with Brussels. "There is no time left for further negotiations, there isnothing that can change over the next few weeks except that thelooming deadline will force MPs hands," Neil Wilson, Markets.comanalyst, said. "There is yet a tremendous risk that the UKleaves without a deal, but the deadline could change."But data showed that inflation in Britain fell to a two-yearlow in January, dipping below the central bank's target andoffering some respite to households ahead of Brexit. DS Smith and London-listed shares of Smurfit Kappa topped the FTSE 100 leaderboard after the latter saidthe current year had started positively and reported strongresults. Smurfit Kappa surged 7 percent on its best day in a year andDS Smith added 4.5 percent.
Miners also supported the main index, rising 2percent on their best day so far this month as London copperprices were higher after five sessions of losses.
Galliford led the FTSE 250 with a 6 percent gain, at itshighest since end-November, after reporting higher first-halfprofit that topped Liberum estimates.
The upbeat results and hopes of a potential Brexit delaylifted blue-chip housebuilders Persimmon , Barratt and Taylor Wimpey , which are among those mostvulnerable to a no-deal Brexit.
On Wall Street, hopes that the ongoing U.S.-China tradetalks could result in an agreement drove stocks higher.That also lifted shares of Asia-focused companies HSBC and luxury brand Burberry , while those with agreater exposure to international markets, such as BritishAmerican Tobacco and the world's largest spiritscompany Diageo , also rose.
In single moves, Rolls-Royce added 3 percent tolevels not seen in four months after a rating upgrade fromCredit Suisse.
Whitbread ended 2.9 percent higher after saying itwill buy back an extra 2 billion pounds ($2.57 billion) ofshares using proceeds from its Costa Coffee sale and laid outaggressive expansion plans for its hotels business. But tour operator TUI underperformed with a 6.3percent slump, extending losses from the previous session whenit posted a bigger first-quarter loss.
Supporting the midcaps was industrial stocks and Dunelm with a 3 percent rise after reporting a jump infirst-half earnings.($1 = 0.7778 pounds) (Reporting by Muvija M and Shashwat Awasthi in Bengaluru;Editing by Josephine Mason/Andrew Cawthorne/Ken Ferris)
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