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* Lookers rise on upbeat profit outlook
* Anglo American, Diageo fall on Deutsche Bank downgrades
* Cyclicals lead losses
* FTSE 100 down 0.2%, FTSE 250 off 1.6%
June 29 (Reuters) - Britain's top share index inched lower
on Wednesday, as gains in healthcare shares were seen providing
little support against growing concerns about a global
After falling as much as 0.8%, the blue-chip FTSE 100 index
recouped some losses to close 0.2% lower in choppy
trading. The index touched a two-week high in the previous
"The FTSE is indicative of the markets at the moment -
nobody knows what to do and there is no real conviction behind
trading," said Stuart Cole, head macro economist at Equiti
"We all know inflation is high, growth is at risk, interest
rates are going higher, but we don't really know how things will
pan out as the authorities react to all this."
Rising worries of an economic slowdown weighed heavily on
cyclical stocks, while miner Anglo American and spirits
maker Diageo dropped 1.7% and 2.8%, respectively, after
Deutsche Bank cut its ratings for both companies.
Further losses were limited by gains in drugmakers
AstraZeneca and GSK, boosting the broader
healthcare sector by 2.0%.
The index has dropped nearly 1% so far this year, but
outperformed its global peers due to a large presence of
resource-focused companies, which have benefited from a surge in
energy and commodity prices.
The British economy is struggling with the risks of recession
and soaring inflation, which is nearing double-digit territory,
while the Bank of England is expected to raise interest rates
again in August.
Those fears have weighed on the FTSE 100 recently, with the
blue-chip index tracking its worst quarterly performance since
Meanwhile, Bank of England Governor Andrew Bailey said that
the central bank had other options beyond being ready to act
"forcefully" if needed to tackle inflation.
The domestically focussed mid-cap FTSE 250 fell
1.6%, snapping a three-day winning streak.
United Utilities and National Grid rose 2.0%
and 0.8%, respectively, after British energy regulator Ofgem
proposed a 20.9 billion pounds ($25.48 billion) package to boost
Shares of Lookers jumped 3.2% after the automotive
aftersales company hiked its full-year outlook on the back of
(Reporting by Boleslaw Lasocki in Gdansk and Amal S in
Bengaluru; Editing by Uttaresh.V, Sherry Jacob-Phillips and Alex