UPDATE 2-Shell, Fed stance weigh on FTSE 100; BoE action hurts mid-caps

* FTSE 100 about flat, FTSE 250 down 0.2%
* Shell drops on poor results
* BAT jumps to highest since 2008 on upbeat results,
forecast
* LSE hits life high on Refinitiv buy
* Small-cap Kier, Thomas Cook skyrocket

(Adds news items, analyst comment, updates to closing prices)
By Muvija M and Shashwat Awasthi
Aug 1 (Reuters) - London's FTSE 100 ended flat on Thursday
despite a profit miss from Shell and dampened hopes of big U.S.
interest rate cuts, while the mid-cap FTSE 250 index slipped
after Brexit worries led the Bank of England to cut its growth
forecasts.
The main index .FTSE dipped 0.03%. Losses were contained
by BAT BATS.L and as London Stock Exchange LSE.L surged 6.5%
to an all-time high after a deal to buy financial information
firm Refinitiv, in which Reuters News parent Thomson Reuters
holds a 45% stake. The midcap index .FTMC gave up 0.2% as the BoE's actions
overshadowed results-driven jumps in medical products maker
Convatec CTEC.L and outsourcer Capita CPI.L .
Shell RDSa.L , the highest-valued company on the FTSE 100,
fell 5% and lost more than 10 billion pounds in market
capitalisation after its second-quarter profit slumped to a
30-month low. But British American Tobacco climbed 6.9% on its best day
since Nov. 2008 as higher demand for e-cigarettes helped its
first-half sales beat forecasts and it pointed to a stronger
second-half performance. On the FTSE 250, ConvaTec stood out with an 18% surge after
revenue trends improved in its second quarter. Capita advanced
17.3% as it remained on track to meet its turnaround targets and
said Brexit could present new opportunities for private sector
contractors.
But the index's fate was sealed after the BoE flagged
increased Brexit worries and a slowing global economy and gave
no indication that it was considering lowering rates.
"Though the BoE failed to spark the kind of fireworks
produced by its American counterpart, it nevertheless played its
part in chipping away at sterling's already fragile confidence,"
Spreadex analyst Connor Campbell said.
Global markets had earlier tumbled after the U.S. Federal
Reserve said Wednesday's 25-basis-point easing did not guarantee
sustained rate cuts in the future.
Still, the exporter-heavy FTSE 100 is on course to post its
biggest annual rise since 2016, drawing strength from a slump in
the pound over no-deal Brexit fears.
In other moves, Rio Tinto RIO.L gave up 3.4% after
announcing capital returns that Jefferies analysts called
"underwhelming", while weakness in copper prices hit other
miners.
Small-cap Kier KIE.L , which has been battling rising debt,
soared 33.3% as its average month-end net debt for 2019 was at
the lower end of its forecast range. Thomas Cook TCG.L shot up almost 26% after Nesat Kockar,
the owner of Turkish tour operator Anex Tourism Group, disclosed
a stake in the travel group. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
LSE https://tmsnrt.rs/2ys1mv5
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