Big tobacco, recession worries push FTSE 100 lower

London's main index dipped on Wednesday as tobacco giants fell after American rivals Philip Morris and Altria confirmed merger talks, while a deeper inversion of the U.S. treasury yield rekindled fears of a global recession. The FTSE 100 slipped 0.3%, down for the fourth straight session, while the midcap index inched 0.5% lower by 0710 GMT, after getting a boost in the previous session from the opposition parties pledge to avert a no-deal Brexit.

British American Tobacco and Imperial Brands were lower by 1% and 2%, respectively, after news overnight that Philip Morris and Altria were in talks to reunite. Losses were limited by a 1.1% rise in BP after the British oil major announced a deal to sell all its Alaskan properties for $5.6 billion to privately held Hilcorp Energy.

Small-cap tour operator Thomas Cook tumbled 15% after a substantial agreement on terms of a rescue package, which Jefferies analysts said could lead to the company's shares being de-listed.