Last checked at 
* FTSE 100 down 1.8%, FTSE 250 slips 0.2%
* Tesco falls on expecting higher costs
* Insurers Aviva, Direct Line slip on dividend cuts
* Novacyt soars on WHO green signal for COVID-19 test kit
(Adds comment, updates share prices)
By Devik Jain and Sruthi Shankar
April 8 (Reuters) - Britain's FTSE 100 lost steam on
Wednesday, as rising global deaths doused hopes that the
coronavirus crisis was abating, while insurers took a hit over
halts in dividend payments and Tesco warned of a surge in costs.
The blue-chip FTSE 100 index fell 1.8% after closing
at a near two-week high on Tuesday. It is still up 3.6% for the
week.
Shares of Aviva Plc and Direct Line, RSA
and Lloyds of London-member Hiscox fell between
2.4% and 8.3% after saying they were cancelling 2019 investor
payouts.
Both EU and British regulators had urged restraint on
dividend payments and payment of bonuses as a buffer against
potential losses from the pandemic. Legal & General,
which said last week it remained committed to distributing its
own dividend, was down 6.2%.
Tesco, Britain's biggest retailer, fell 4.1% as it
forecast costs from the pandemic of up to 925 million pounds
($1.1 billion) and warned it was unable to give a profit
forecast for this financial year.
Fellow retailers Sainsbury and Morrisons
fell about 3%.
Stock markets globally had rallied in the past two days on
signs that new coronavirus cases were plateauing in the hotspots
including New York, Italy and France.
However, the number of deaths across the United States rose
by a record of more than 1,800 on Tuesday even as the number of
hospitalizations seemed to be levelling off in New York state.
"There are signs that things are coming under control, but
markets really need to focus on new cases, fatality rates and
economic data," said Edward Park, deputy chief investment
officer at London-based firm Brooks Macdonald.
"The daily drum beat of fiscal and monetary policy
(stimulus) has slowed from a few weeks ago and a lot of U.S. and
UK are deferring corporate announcements."
Companies listed on the pan-European STOXX 600 are expected
to post a 30.2% slump in second-quarter earnings, according to
Refinitiv data, versus a 21.9% decline forecast just a week ago.
Investors also awaited updates as British Prime Minister
Boris Johnson spent a second night in intensive care, with
officials saying he was in a stable condition after receiving
oxygen support for COVID-19 complications.
With the UK death toll rising to 6,159, London Mayor Sadiq
Khan said Britain is nowhere near lifting the lockdown measures
as the peak is still more than a week away.
Midcap shares, which flipped into positive territory
at one point, were last down 0.2%.
Online fashion retailer ASOS Plc soared 26% after
saying it had raised 247 million pounds ($304 million) via a
placing, to help it shore up its finances against any prolonged
business downturn from the coronavirus pandemic.
Healthcare company Novacyt surged 22% after it got
the green light for its COVID-19 diagnostic test for procurement
under the World Health Organisation's (WHO) Emergency Use
Listing process.
(Reporting by Devik Jain and Sruthi Shankar in Bengaluru;
Editing by Bernard Orr and Patrick Graham)
