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* FTSE 100 down 1.2%, FTSE 250 down 0.8%
* Antofagasta drags main index after H1 profit fall
* IHG among handful of gainers on report of merger
Aug 20 (Reuters) - UK shares tracked Asian markets lower on
Thursday, as worries mounted over a prolonged economic fallout
from the COVID-19 pandemic following the U.S. Federal Reserve's
cautious tone on recovery.
The FTSE 100 index .FTSE was 1.2% lower by 0707 GMT, with
the midcap bourse .FTMC falling 0.8%.
Minutes of the Fed's July 28-29 policy meeting showed
policymakers saw a rebound in employment already slowing and
that additional "substantial improvement" would depend on the
reopening of business activity. They warned of a highly uncertain path for recovery from the
global health crisis that has hammered business activity across
the world.
On corporate news-driven moves, miner Antofagasta ANTO.L
fell 5% after posting a plunge in half-year earnings, while
InterContinental Hotels IHG.L gained 2.5% after a newspaper
report that French rival Accor ACCP.PA had examined a merger
with it.