British shares cheer easing U.S.-Iran worries

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* FTSE 100, FTSE 250 up 0.4%

* SIG tanks after profit warning

* M&S, Card Factory whacked

Jan 9 (Reuters) - UK stocks rebounded on Thursday as chances of a full-blown crisis in the Middle East waned, but shares of SIG, Marks and Spencer and Card Factory missed out on the recovery after the companies warned of a hit to their annual performance.

The FTSE 100 and FTSE 250 rose 0.4% after U.S. President Donald Trump stepped back from more military action against Iran and Tehran signalled an end to retaliation.

Building materials supplier SIG slumped 25% to the bottom of the midcaps after warning that profit would be significantly lower as its recovery in weak UK and Germany construction markets was taking longer than expected.

M&S slid 7.5% after the retailer warned full-year gross margins would be around the lower end of its forecast. Greeting card specialist Card Factory tumbled 18% to a life low, after saying subdued performance over Christmas would hit profit. (Reporting by Shashwat Awasthi in Bengaluru; Editing by Arun Koyyur)