UPDATE 2-FTSE 100 falls after Fed minutes, pound rally

* FTSE 100 down 1.1%, FTSE 250 flat
* Sterling rally hurts exporters
* NMC Health outperforms main index
* Ocado lower after fire at customer fulfilment centre
* London markets will be shut on Aug. 26 for Summer bank
holiday

(Adds news items, analyst comment, updates to closing prices)
By Shashwat Awasthi and Indranil Sarkar
Aug 22 (Reuters) - London's FTSE 100 fell on Thursday as the
latest signals from the U.S. Federal Reserve dampened hopes of
hefty interest rate cuts, while exporter stocks slipped as the
pound rose after German Chancellor Angela Merkel's comments on
the Brexit deal.
The FTSE 100 .FTSE shed 1.1%, while the FTSE 250 .FTMC
was roughly flat.
Companies that book a major chunk of their earnings in
dollars, including Diageo DGE.L and Unilever ULVR.L dropped
after Merkel said a solution to the Irish border problem could
be found before Britain leaves the European Union on Oct. 31.
Her comments lifted sterling to a three-week high against the
dollar. GBP/ GBP= .
BAT BATS.L gave up 1.5%, hit by the gains in sterling as
well as a probe by a U.S. House panel into e-cigarette
manufacturers over the health impact of their products. Imperial
Brands IMB.L lost 2.7%, as the stock also traded ex-dividend.
UAE-based healthcare provider NMC Health NMC.L was the
standout performer, surging more than 18.5% for its best day
ever, after sources told Reuters that two groups, including one
backed by China's Fosun 0656.HK , were competing to buy a 40%
stake in the company worth up to $1.9 billion. The company also posted half-year results and announced
plans to buy back up to $200 mln worth of shares. Losses on the main index were spread across sectors after
Fed minutes overnight showed policymakers were deeply divided on
an interest rate cut, at a time when many investors are looking
to central banks to help cushion blows from a bruising
U.S.-China trade dispute.
"It would appear that dealers were too bullish going into
the update, and now that the Fed's opinion about the state of
the U.S. economy is known, traders are trimming their equity
positions," CMC Markets analyst David Madden said.
Online grocer Ocado OCDO.L dropped 3.1% after it said
there had been a small fire on Wednesday evening at its customer
fulfilment centre in Erith, which was later extinguished.
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The more domestically-focussed mid-cap index was supported
by the pound and an 11.6% surge in casino and gaming operator
Rank Group RNK.L and a 9.3% jump in Premier Oil PMO.L after
their respective results.
However, infrastructure group John Laing Group JLG.L lost
5.7% after its half-year results, while Ukraine-focused iron ore
pellet producer Ferrexpo FXPO.L fell 6.1% after brokerage
Liberum cut its rating and almost halved its price target on the
stock.