* FTSE 100 up 0.3%
* FTSE 250 down 0.5%
* Pharma, consumers biggest boosts to main index
* Kier at 2 decade low after profit alert
(Adds company news items, changes analyst comments, updates
share moves throughout)
By Muvija M and Shashwat Awasthi
June 3 (Reuters) - London's FTSE 100 shed losses to bag
gains as investors flocked to defensive stocks after an exchange
of trade threats between the U.S. and China stoked fears of a
slide into recession, while a profit warning sent builder Kier
to its lowest in two decades.
The main FTSE 100 index .FTSE ended 0.3% higher, after
earlier hitting its lowest level since March 8, while the midcap
index lost 0.5%.
China warned the United States at the weekend not to meddle
in security disputes over Taiwan and the South China Sea, while
President Donald Trump threatened to impose tariffs on all
Mexican goods. In response, investors pooled their money into stocks that
are deemed less risky at times of macro-economic uncertainties.
AstraZeneca AZN.L and GlaxoSmithKline GSK.L led gains on
main index, while retail giants Diageo DGE.L and Unilever
ULVR.L also climbed.
The exporter-heavy main index also found support in a dip
pound, that came after a survey showed that the Brexit
stockpiling boom of early 2019 gave way in May to the steepest
downturn in British manufacturing in almost three years.
Construction group Kier KIE.L was the biggest faller on
the FTSE 250 index, down 41% and at its lowest level since early
1999 after a profit warning and growing fears of a dividend cut
and another funding-raising due to mounting debts. ARE WE HEADING TO?"
Investors kept an eye on Trump's contentious visit to
Britain, which started on Monday and comes at a time of deep
political uncertainty ahead of Prime Minister Theresa May's
resignation this week.
Trump over the weekend repeated his backing for candidates
to succeed May who have said Britain must leave the European
Union on the due date of Oct. 31 with or without a deal.
"Some traders will be keeping an ear out for any comments
about the future of UK-US relations, and some dealers are
nervous the U.S. President might try his tough tactics on
Britain," David Madden, CMC Markets analyst, wrote.
After recording its first monthly fall this year in May and
despite starting off the session on the back foot, the FTSE 100
closed in positive territory and started off the new month on a
good note.
"The market is finding it difficult to find a direction...
yes they've fallen in May, it's not been nice, but it's not as
bad as you might have expected given the number of salvos that
have been fired," said Antoine Lesne, head of SPDR ETF strategy
and research at State Street Global Advisers.
"Which begs the question, where are we heading to?"
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Builder Kier, peers lag FTSE 250 index https://tmsnrt.rs/2KnNnh4
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