UPDATE 2-UK shares tumble as trade tensions fuel sell-off

* FTSE 100 down 2.5%, FTSE 250 down 2%
* Equities sell-off continues for second straight session
* M&S, Ocado down after online food JV
* Fresnillo gains as gold surges
* easyHotel climbs after buyout offer

(Adds analyst comment, updates to closing prices)
By Shashwat Awasthi
Aug 5 (Reuters) - Britain's stock market indexes fell
sharply on Monday, joining a sell-off in global markets, as
U.S.-China trade tensions prompted investors to seek safe-haven
assets, while Ocado and Marks & Spencer fell after sealing a
deal to set up an online food joint venture.
The FTSE 100 .FTSE shed 2.5% in its worst day since early
December, while the mid-cap FTSE 250 .FTMC sank 2% and hit its
lowest level in two months.
Markets have been alarmed by President Donald Trump's action
to slap 10% tariffs on $300 billion in Chinese imports,
prompting China to vow to retaliate. "There is a feeling that China could inflict a lot more pain
on the U.S. in terms of the trade spat, and many traders are
worried the economic conflict will rumble on for some time," CMC
Markets analyst David Madden said.
The FTSE 100 in May posted its only monthly loss so far this
year as the trade dispute escalated, before Washington and
Beijing called for a truce. That, along with a slump in the
pound over no-deal Brexit fears, has since helped the index post
back-to-back monthly gains.
"Judging by the ferocity of the last two day's sell-off and
today's further declines ... we look set to see some further
August angst for investors," CMC Markets analyst Michael Hewson
said.
With dealers shunning equities, gold prices jumped to their
highest level in more than six years on Monday. Precious metals
miner Fresnillo FRES.L added 4.7% and was the only blue-chip
stock that closed in the black. GOL/
Retailer Marks & Spencer MKS.L and online supermarket
Ocado OCDO.L fell 5.1% and 4.6% respectively, following their
online food venture deal that will result in the termination of
Ocado's current deal with Waitrose JLPLC.UL . Wimpey TW.L dropped 5.2% after multiple brokerages
cut their price target on the stock after the housebuilder's
downbeat results and margin warning last week.
AIM-listed budget hotel chain easyHotel EZH.L soared 33.3%
to 94 pence after its board recommended a bid of 95 pence per
share from a consortium of property funds. Thomas Cook TCG.L , whose shares soared almost 90% last
week after the founder and owner of Turkish tour operator Anex
Tourism Group built a stake in the company, surged another 35%
as it advanced for the fourth session in a row. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Ocado, M&S stock performance since announcing JV https://tmsnrt.rs/2MF5h04
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