UPDATE 2-London stocks end above intra-day lows after BoE flags negative rates

* Banks sink on prospect of below-zero rates
* Tech-related investment firms drag on mid-cap index
* Retailer Next gains after boosting profit forecast

(Adds details, updates to close)
By Shashank Nayar and Ambar Warrick
Sept 17 (Reuters) - British shares ended lower on Thursday
weighed down by major banks and investment stocks, but came off
intraday lows after the pound fell on the Bank of England
flagging a possible shift to negative rates.
The blue-chip FTSE 100 .FTSE and the mid-cap FTSE 250
.FTMC shed 0.5% and 0.3%, respectively, with major banks
falling on the prospect of negative lending rates. But the
resulting weakness in the pound looked to benefit the
export-heavy index in the near-term.
Healthcare stocks supported the FTSE 100 slightly, with
Astrazeneca AZN.L adding 1.2% after it entered into an
agreement with Dogma Therapeutics. Tech-focussed investment firms were biggest drags on the
FTSE 250 following another sell-off in U.S. technology stocks.
.N
The Bank of England said it was considering negative
interest rates as Britain's economy faces a triple whammy of
rising COVID-19 cases, higher unemployment and a possible new
Brexit shock. It also kept its main stimulus programs on hold,
citing a faster-than-expected economic recovery from pandemic
lows. "Given already high expectations of further easing, the
debate about which tool the Monetary Policy Committee might use
has also gathered a lot of attention," ING analysts wrote in a
note.
"We remain confident that an increase in the asset purchase
facility is more likely in the near-term."
A raft of global stimulus has powered equity markets since a
coronavirus-driven crash in March, but gains have slowed
recently against the backdrop of a wobbly economic rebound and,
in Europe, growing fears of a no-deal Brexit.
Next NXT.L rose 4.1% after the clothing retailer raised
its profit outlook for the second time in two months.
"That is not to say that the outlook for the second half
isn't going to be a challenging one, but it's good to know that
there are some retail stocks that are dealing with the various
challenges head on," said Michael Hewson, market analyst at CMC
Markets UK.
Online trading platform IG Group IGG.L topped the FTSE 250
after reporting a surge in first-quarter revenue.