FTSE 100 slips on sombre European mood, earnings lift mid caps

(Reuters) - UK's FTSE 100 dipped on Thursday as a deepening political crisis in Italy and an imminent European Central Bank policy decision weighed on investor mood across Europe, while positive corporate earnings reports supported the mid-cap index.

The blue-chip FTSE 100 fell 0.2% by 0739 GMT, in line with losses in the broader European equities benchmark.

There was some relief that gas began flowing again along the biggest pipeline from Russia to Germany, though Italy's politics and an expected interest rate hike in Europe weighed on the mood. [MKTS/GLOB]

Veterinary drugs producer Dechra Pharmaceuticals slid 6.4% to the bottom of the FTSE 100 after placing shares, while Carnival Corp fell 7.2% on stock offering plans.

The domestically focussed mid-cap index gained 0.3%, with Frasers Group jumping 11.9% to the top of the index after Mike Ashley's sportswear and fashion group said it expected higher profit next year.

Online trading platform IG Group climbed 3.9% after reporting a slightly higher-than-expected annual profit.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu)