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* FTSE 100 up 0.1%, FTSE 250 off 0.1%

Dec 29 (Reuters) - The UK's benchmark FTSE 100 edged upwards on Friday, set for a weekly rise, as shares of industrial metal miners climbed on higher copper prices, while a drop in energy shares capped gains.

The blue-chip FTSE 100 edged 0.1% higher by 8:13 GMT, while FTSE 250 midcap index was down 0.1%, although both were on track for weekly gains.

For the year, FTSE 100 added over 3.7%, its third consecutive yearly gain, while midcap stocks snapped the previous year's declines to climb more than 4.5% through 2023.

Industrial metal miners rose 0.4%, with prices of copper moving upwards as the prospect of U.S. interest rate cuts brightened the outlook for the metals.

Heavyweight oil and gas shares moved down by 0.1%, but were set for a yearly gain of more than 4.6%.

Meanwhile, data showed British house prices dropped more than expected in the year.

The real estate sector slipped 0.3%.

In corporate news, iron ore pellet producer Ferrexpo shares rose 4.8% after the company posted end-of-year report.

(Reporting by Khushi Singh in Bengaluru; Editing by Sohini Goswami)