Last checked at 
* FTSE 100 down 0.3%, FTSE 250 down 0.2%
* BAE Systems outshines main index
* Fevertree slumps after revenue warning
* Intu down after confirming talks over cash call
(Adds news items, analyst comment, updates to closing prices)
By Shashwat Awasthi
Jan 20 (Reuters) - Recurring fears of a hard Brexit and bets
that the Bank of England will cut interest rates hit London's
FTSE 100 on Monday, while premium tonic water maker Fevertree
endured its worst day ever.
The main index, which hit a near six-month high in
the previous session, gave up 0.3%. BAT weighed the
most, while Shell and BP weakened despite a jump
in crude prices.
UK-exposed banks including Lloyds and RBS
were lower, as expectations that the BoE will ease policy this
month continue to rise.
But homebuilders Persimmon, Barratt and
Berkeley advanced about 2% each. Lower interest rates
make it easier for consumers to take out mortgages to buy
houses.
The FTSE 250 was 0.2% lower, with Capita
dropping 4.2% after UBS downgraded the stock. Separately, a
media report https://www.telegraph.co.uk/business/2020/01/18/capita-targets-profit-growth-200m-non-core-sell-off
on Saturday said the company was planning a 200-million-pound
sale of a clutch of units.
Also weighing on sentiment were comments from UK finance
minister Sajid Javid that Britain would not commit to sticking
to European Union rules in post-Brexit trade talks.
Still, both benchmark indexes avoided any major shocks as
overall trading volume remained thin, with U.S. markets closed
for the Martin Luther King Jr. holiday.
"Traders in this part of the world are mostly sitting on the
fence... Trading ranges have been low and there hasn't been much
in terms of news flow in Europe to grab traders' attention," CMC
Markets analyst David Madden said.
Though sharp moves were scant, Fevertree sank 27%
on its worst day ever after warning that annual revenue growth
would be below its expectations following subdued trading over
Christmas.
"Falling sales in the UK will inevitably spark fears the gin
boom has turned to bust," Hargreaves Lansdown analyst Nicholas
Hyett said.
Intu Properties, which shed more than 70% in value
last year amid a string of bankruptcies on Britain's High
Street, ended 1% lower after saying it was targeting an equity
raise.
Its shares had earlier tumbled as much as 10% to a record
low, while those of peer Hammerson gave up 3.7%.
Defence company BAE Systems outperformed the
blue-chips with a 3.7% gain after saying it would buy two units
being offloaded due to the merger of U.S. rivals Raytheon and
United Technologies.
(Reporting by Shashwat Awasthi in Bengaluru; Editing by Anil
D'Silva and Andrew Heavens)
