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* Softbank leads $1 bln investment in Britain's THG, shares
surge
* NatWest slips as Britain lowers stake with $1.5 bln share
sale
* FTSE 100 down 2.6%, FTSE 250 off 2.3%
(Updates with market close)
By Shivani Kumaresan and Devik Jain
May 11 (Reuters) - British stocks clocked their worst day
since late October on Tuesday after a sudden drop in big U.S.
tech stocks over inflation concerns, while shares of THG Plc
eyed their best day on record on raising more than $1 billion in
new equity.
The blue-chip index slid 2.6%, dragged down by
heavyweight banks, life insurers
and miners.
All the FTSE 100 constituents were trading in negative
territory.
The domestically focused mid-cap FTSE 250 index
tripped 2.3%.
Travel and leisure stocks slipped 4.0%, with
British Airways owner IAG falling the most, after it
launched an 800 million euro ($971.52 million) convertible bond
due in 2028 to strengthen its balance sheet.
Globally, tech stocks took a beating as investors braced for
U.S. inflation data due on Wednesday, while keeping a close eye
on a host of Federal Reserve speakers this week to assess how
authorities are likely to respond to receding risks posed by the
coronavirus pandemic in some major economies.
"With China and the U.S., the world’s two largest economies,
showing signs of rising inflationary pressures, investors are
getting nervous," said Sophie Griffiths, Market Analyst, UK &
EMEA, at ONANDA.
"The overriding fear is that pandemic stimulus combined with
reopening economies will spark a sharp drive high in inflation,
forcing central banks to take action, tightening policy and
potentially slowing down economic recovery."
The FTSE 100 has gained about 7.2% year-to-date on optimism
that speedy COVID-19 vaccinations and constant policy support
from the government would drive a stronger economic recovery.
Beauty and lifestyle e-commerce company THG surged
11.7% after it raised more than $1 billion in new equity,
including $730 million from Japan's Softbank Group.
NatWest slid 3.5% after the UK government completed
a 1.1 billion pound ($1.55 billion) share sale at a discounted
price.
(Reporting by Shivani Kumaresan and Devik Jain in Bengaluru;
Editing by Subhranshu Sahu, Rashmi Aich and Mark Heinrich)
