FTSE 100 jumps to 10-day high as luxury stocks gain

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* FTSE 100 up 0.8%, FTSE 250 slips 0.1%

Jan 26 (Reuters) - London's blue-chip share index jumped to a 10-day high on Friday after upbeat earnings updates from European luxury firms boosted Burberry and Diageo, while a pullback in sterling supported shares of dollar earners.

The FTSE 100 climbed 0.8% by 0819 GMT, hitting its highest level since Jan. 16.

Boosting luxury stocks across Europe, French giant LVMH jumped 8.2% after posting a 10% rise in fourth-quarter sales. British luxury group Burberry climbed 2.6%.

Diageo added 3.9% after French spirits maker Remy Cointreau posted a slightly smaller-than-expected decline in third-quarter sales.

The pound dipped 0.2%, helping shares of global companies such as Shell and AstraZeneca that tend to draw a large part of their revenue overseas.

The domestically focussed FTSE 250 index slipped 0.1%, with Tullow Oil dropping 3.7% after Stifel downgraded the stock to "sell".

Still, both the UK stock indexes looked set for their first weekly rise in four, aided by talks of more stimulus for China's slowing economy and positive corporate updates. (Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu)