UPDATE 2-UK blue-chips rise with European peers; Royal Mail drags mid caps lower

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* Royal Mail drops 12.4% after scrapping dividend
* Lender NSF warns of going concern risks
* Travel and leisure stocks hit one-month low
* FTSE 100 up 0.4%, FTSE 250 off 0.2%
* Banks, healthcare, energy boost FTSE 100

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By Susan Mathew
June 25 (Reuters) - London's blue-chip FTSE 100 ended higher
on Thursday as banks and energy stocks climbed, while the
domestically focused mid-caps index slipped amid worries over
the economic damage being wrought by the coronavirus pandemic.
The FTSE 100 .FTSE rose 0.4%, in line with the main
European bourses, after the European Central Bank said it will
offer euro loans against collateral to central banks outside the
euro area to backstop funding markets amid the pandemic.
.EU
Banks led gains followed by healthcare stocks, while a rise
in oil prices buoyed energy stocks. O/R
The FTSE 250 .FTMC ended 0.2% lower with Royal Mail and
pandemic-pressured travel and leisure stocks .FTNMX5750
leading losses.
The postal company RMG.L slipped 12.4% after it reported a
31% fall in profits and scrapped dividend payouts for 2020-2021,
while also announcing a restructuring plan that includes 2,000
job cuts. "We have seen a major focus on the international outlook,
with ongoing improvements in the (domestic) COVID trajectory and
impending easing of lockdown measures doing little to bolster
(UK) stocks," said Joshua Mahony, senior market analyst at IG.
Broader sentiment remained fragile, with surging numbers of
new coronavirus cases and high levels of jobless claims in the
United States signalling a prolonged period of economic
distress. MKTS/GLOB
"In particular, domestic travel groups such as Trainline
TRNT.L , Go-Ahead Group GOG.L , and National Express NEX.L
are seeing sharp downside as doubt creeps in despite the
proposed reopening of the UK."
Low-budget airline easyJet EZJ.L shed 9.5% a day after
reporting a bigger loss for the first half of the year. Among
other decliners, subprime lender NSF NSF.L tumbled 32.2% on
flagging risks to its going concern status.

Focus is also returning to the UK's trade negotiations
following its exit from the European Union. "Trade issues (are) a major downward factor for markets
going ahead, considering the FTSE 100 is highly export-driven,"
said Roland Kaloyan, equity strategist at Societe Generale.