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• FTSE 100 down 0.6 pct
• FTSE 250 down 0.4 pct
• M&S slumps on rights issue plans
• Metro Bank at life low on cash call
• Ted Baker slips after weak outlook

Feb 27 (Reuters) - British blue-chip stocks fell again on Wednesday as Marks & Spencer tumbled after announcing a rights issue to fund an online food joint venture with Ocado, while plans for a cash call knocked Metro Bank to an all-time low.

The main index .FTSE was 0.6 percent lower by 0825 GMT while the midcap index .FTMC was down 0.4 percent.

M&S MKS.L slumped as much as 10 percent and was on course for its steepest one-day decline in more than two and a half years.

But Ocado added 5 percent as M&S said it would pay 750 million pounds to own half of the online grocer’s UK retail business.

The blue-chip bourse, which earns a major chunk of its earnings in dollars, was also dragged down by a stronger pound. Sterling had rallied in the previous sessions as hopes grew that Brexit maybe delayed.

Midcaps saw some big fallers too, with Metro Bank MTRO.L tanking 20 percent a day after it disclosed that regulators were looking to investigate the circumstances around an accounting error at the lender.

Metro Bank also announced plans for a 350 million pounds shareholder cash call on Tuesday.

Fashion retailer Ted Baker TED.L slid 14 percent after it forecast lower earnings for the year, blaming the impact of foreign exchange rates, higher costs to upgrade its systems and inventory write-downs.

Rio Tinto RIO.L outperformed with a 2 percent rise after it announced a special dividend and reported a better-than-expected earnings for the year.

Taylor Wimpey, Britain's third-largest homebuilder, added 1.3 percent after it said demand for its homes remained strong at the start of the year.

On the FTSE 250, gambling software maker Playtech PTEC.L rose 4 percent after inking a deal with GVC GVC.L to provide its services and products to GVC brands.

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UK stock report FTSE index: 0#.FTS6

 techMARK 100 index:  .FTT1X		  FTSE future	  0#FFI:   
 Gilt future		0#FLG:		  Smallcap index:	 .FTSC   
 FTSE 250 index:	  .FTMC		   FTSE 350 index:	 .FTLC   
 Market digest:	   .AD.L		   Top 10 by vol:	  .AV.L   
 Top price gainer   .NG.L		   Top % gainer	  .PG.L   
 Top price loser	.NL.L		   Top % loser	   .PL.L   
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 European Equities speed guide................  EUR/EQUITY   

FTSE Eurotop 300 index........................... .FTEU3 DJ STOXX index................................... .STOXX Top 10 STOXX sectors........................ .PGL.STOXXS Top 10 EUROSTOXX sectors................... .PGL.STOXXES Top 10 Eurotop 300 sectors.................. .PGL.FTEU3S Top 25 European pct gainers.................... .PG.PEUR Top 25 European pct losers..................... .PL.PEUR ))