Last checked at 
(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* FTSE 100 down 0.5%, FTSE 250 up 1.9%
* Tesco falls on higher costs forecast
* Insurers Aviva, Direct Line slide on dividend cuts
* Midcap stocks extend gains for third day
(Updates with closing price)
By Sruthi Shankar and Devik Jain
April 8 (Reuters) - Britain's FTSE 100 pulled back on
Wednesday, as a rising global death toll crushed hopes that the
coronavirus crisis was subsiding, while insurers took a hit over
halts in dividend payments and Tesco warned of a surge in costs.
The blue-chip FTSE 100 index ended 0.5% lower after
closing at a near two-week high on Tuesday. It is still up 4.8%
for the week.
Shares of Aviva Plc and Direct Line, RSA
and Lloyds of London-member Hiscox fell between
3.8% and 7.9% 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 3.8%.
Tesco, Britain's biggest retailer, fell 0.6% 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 the current year.
However, it defended its decision to pay dividend. Fellow
retailers Sainsbury and Morrison fell 4% and
0.8%, respectively.
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.
"Markets have come to a realisation that it's not easy to
have a V-shaped recovery. Even if we are looking at prospect of
easing restrictions, there is still lots of uncertainty," said
Ulas Akincilar, head of trading at online platform INFINOX.
"Going forward we will see more negative forecasts for
dividends, stock buybacks and revenue."
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.
With the UK death toll rising to 7,097, London Mayor Sadiq
Khan said Britain is nowhere near lifting the lockdown measures
as the peak is still more than a week away.
Meanwhile, British Prime Minister Boris Johnson was
"clinically stable" in intensive care and responding to
treatment for COVID-19 complications after testing positive
nearly two weeks ago.
Midcap shares, up 1.9%, extended gains for a third
straight session.
Online fashion retailer ASOS Plc soared 28% 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.
Recruiter PageGroup rose 5.7% after it said it
would shed another 250 staff in April and cut directors' pay by
20% in efforts to ride out the health crisis.
(Reporting by Devik Jain and Sruthi Shankar in Bengaluru;
Editing by Bernard Orr and Patrick Graham)
