UPDATE 1-FTSE 100 slips on global trade worries; pub chain Ei surges after deal

Britain's FTSE 100 followed other major stock markets lower on Thursday as initial batches of corporate earnings jangled nerves over global growth, while losses for London's mid-cap index were capped by a buyout of pub operator Ei Group.

All but one of the blue-chip index's sectors were in the red as it shed 0.4%. The mid-cap FTSE 250 lost 0.3% by 0800 GMT. Slug and Lettuce owner Stonegate Pub Company agreed to buy Ei Group for 285 pence a share, a 38% premium to Wednesday's close, which sent the mid-cap pub chain's stock to its highest in more than a decade.

The stock surged nearly 39% and helped fellow mid-cap pub operators Mitchells & Butlers, Greene King and Marston's rise between 1.1% and 2.9%. "We believe the acquisition rationale is compelling and given the outlook for UK consumer and property valuation, could be attractive to Ei Group shareholders," Liberum analysts said.

Meanwhile, the effects of a protracted Sino-U.S. trade dispute on corporate earnings and worries that trade tensions could further escalate have turned investors across the globe risk-averse. While U.S. railroad operator CSX and German tech heavyweight SAP have flagged trade war impact, a report https://on.wsj.com/2XNS9fB that progress towards a trade deal had stalled weighed on sentiment.

After a slump in May due to rising worries that Washington's trade war with China and other partners would escalate, the FTSE 100 has steadied and is on course for its best year since 2016. The exporter-heavy index's gains have been fuelled by hopes of interest rate cuts by central banks and the plummeting value of the pound due to concerns around the Conservative leadership election and risks from Brexit.

AIM-listed ASOS tanked 11%, as it blamed operational issues for its third profit warning in eight months. Its shares were on track for their worst day since December, when the online fashion retailer's previous warning had triggered a global retail sell-off.

Luxury brand Burberry, which is on course for its best week in more than a decade after posting robust sales growth on Tuesday, gave up 1.5%. The mid-cap index was also supported by a 3.3% gain in budget airline EasyJet, which re-affirmed its annual profit forecast, reassuring investors despite softening demand in the industry due to Brexit-driven consumer uncertainty.