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* Diageo up after Remy Cointreau's sales beat

* UK consumer sentiment at two-year high - GfK

* FTSE 100 up 1.1%, FTSE 250 adds 0.2%

Jan 26 (Reuters) - The UK's FTSE 100 looked set to post strong weekly gains on Friday as upbeat earnings from European luxury firms boosted shares of Burberry and Diageo, while investors took comfort from data that showed UK consumer sentiment hit a two-year high.

The FTSE 100 climbed 1.1% to hit a more than 10-day high.

French giant LVMH jumped 9.9% after posting a 10% rise in fourth-quarter sales. British luxury group Burberry climbed 2.4%.

Johnnie Walker whisky maker Diageo added 3.9% after French spirits maker Remy Cointreau beat third-quarter sales expectations.

British consumers are their most confident since January 2022 as lower inflation helped them to feel better about their finances, a GfK survey on Thursday showed.

"So while there's still clearly further room for things to improve, the average consumer's concerns are reducing as hopes for interest rate cuts and lower inflation trickle through," noted Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown.

"Retailers who have faced a tough Christmas will be hoping these better moods translate into improved spending."

Adding to the upbeat sentiment, New York's S&P 500 closed at an all-time high for a fifth straight session on Thursday after data showed the U.S. economy grew faster than expected in the fourth quarter amid strong consumer spending.

The UK's domestically focussed FTSE 250 index edged up 0.2%, but Tullow Oil dropped 4.9% after Stifel downgraded the stock to "sell".

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.

UK-listed shares of BHP Group dipped 0.9% after a Brazilian federal judge ruled that miners Vale and BHP and their joint venture Samarco must pay 47.6 billion reais ($9.67 billion) in damages for a 2015 tailings dam burst. (Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu and Shailesh Kuber)