UPDATE 2-Britain's FTSE 250 stumbles as Brexit worries bite; Ocado shines

* FTSE 100 down 0.2%, FTSE 250 down 0.6%
* Brexit jitters drag sterling lower
* Miners slip as copper prices ease
* Ocado climbs after affirming forecast
* BASF profit alert hits industrials

(Adds news items, analyst comments, updates to closing prices)
By Shashwat Awasthi and Muvija M
July 9 (Reuters) - Britain's mid-cap index fell for the
third straight session on Tuesday amid a deteriorating economic
outlook and Brexit tensions, while online grocer Ocado jumped on
the FTSE 100 after confirmed its annual forecast.
The main index .FTSE fell 0.2% and the mid-cap FTSE 250
.FTMC shed 0.6%, as a hefty profit warning from German
chemicals giant BASF BASFn.DE rocked several industrial
companies.
Sterling fell towards its lowest levels in more than two
years, pressured by a cocktail of gloomy retail sales data and
lingering fears of a 'no-deal' Brexit. GBP/ Rupert Harrison, portfolio manager and head of research for
the diversified strategies team at BlackRock, said the outlook
had deteriorated over the past three months, while the chance of
an "extreme outcome" had risen compared with the probability of
a managed exit.
"We're relatively negative on the macro-economy. The
cumulative impact of the (Brexit) uncertainty... has definitely
had a negative impact on momentum," Harrison said.
Dublin's main index .ISEQ , generally sensitive to Brexit
jitters and often considered a gauge of risk sentiment, slipped
0.8%.
Shares of airlines and tourism companies took a hit from the
increasing uncertainty. TUI TUIT.L and easyJet EZJ.L fell
about 3%, British Airways owner IAG ICAG.L lost 1.6%, while
Thomas Cook TCG.L gave up 5.1%.
The FTSE 100 took a back seat to the domestic index, but was
led lower by losses in miners .FTNMX1770 , as copper prices
continued their recent slide on worries over waning demand from
top consumer China. However, Ocado OCDO.L surged 5.6% on its best day since
late February after it affirmed its annual forecast, even though
its first-half core earnings nearly halved, partly due to the
impact of a fire at its flagship robotic warehouse. A sub-index of chemical companies .FTNMX1350 slipped to a
more than six-month low and underperformed the broader index,
after BASF BASFn.DE warned on profit, citing impact from the
U.S.-China trade dispute.
Shares of Melrose MRON.L tumbled 4.1% on the main index,
while Bodycote BOY.L , Vesuvius VSVS.L and Weir Group
WEIR.L were among the top mid-cap losers.
Software firm Micro Focus MCRO.L declined 5.3% after a
higher-than-expected drop in first-half licence revenue.
RHI Magnesita RHIM.L , which sells products made with
heat-resistant materials, skidded 5.9% on the FTSE 250 after
announcing a placing of about 2.2 million shares.