FTSE 100 rebounds despite trade war escalation; Greggs on a roll

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* FTSE 100, FTSE 250 up 0.5 pct

* Miners, Asia-exposed stocks boost main index

* Greggs soars on vegan sausage roll popularity

* Renishaw skids after cutting profit target again

May 14 (Reuters) - Britain's FTSE 100 bounced back as investors returned to equities after U.S. President Donald Trump backed trade discussions with China to be successful, while baker Greggs hit a life-high on brighter 2019 prospects.

The FTSE 100 and the FTSE 250 were up 0.5% by 0718 GMT.

The main index rose despite China levying retaliatory tariffs on U.S. goods on Monday, as sentiment was tempered after Trump said he felt trade negotiations with Beijing were "going to be very successful".

Miners as well as Asia-facing financial heavyweights rebounded after steep losses in the previous session to boost the FTSE 100 on Tuesday.

All but one sector was in the black on the blue-chip bourse. Utilities slipped as appetite for riskier assets returned after three sessions of caution.

Among mid-caps, baker Greggs surged 12% to an all-time high after it said the popularity of its vegan sausage rolls continued to grow and would lead 2019 sales and profit to be materially higher than its earlier view.

But Renishaw skidded 9.1% after the engineering group cut its annual profit target for the second time this year. (Reporting by Shashwat Awasthi and Muvija M in Bengaluru Editing by Peter Graff)