UPDATE 2-British stocks abandon gains as miners tumble; Melrose jumps

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* Melrose rises as it sees pick-up in some markets
* BoE Deputy Governor Ramsden hints of more stimulus
* FTSE 100 down 1.6%, FTSE 250 down 1.3%

(Recasts throughout, adds comments)
By Shreyashi Sanyal
Sept 3 (Reuters) - London shares closed lower on Thursday as
miners weighed down the FTSE 100 index after optimism about more
stimulus proved to be short-lived, while shares of Melrose
jumped after it signalled a pick-up in some markets.
The blue-chip FTSE 100 .FTSE slipped 1.6%, with miners
.FTNMX1770 tumbling 4%, while the mid-cap index .FTMC shed
1.3%.
Turnaround specialist Melrose Industries Plc MRON.L jumped
12.5% as it said there were signs of a pick-up in some of its
markets, excluding aerospace, after the coronavirus crisis
slashed its first-half profit by 90% and prompted job cuts.
Trillions of dollars in stimulus and signs of a pickup in
business activity have lifted the FTSE 100 from its March lows,
but the index is still down about 22% from its pre-pandemic
highs as the domestic economy struggles to post steady growth.
Investors have also grown wary of bubble-like signs emerging
in the U.S. technology sector, with absolute valuations hitting
worrisome levels. .N
"Over the course of the coronavirus crisis, we have argued
against the view that the surge in the share prices of the five
'big tech' firms is another dotcom-style bubble," said
economists at Capital Economics.
"But given how much further they have climbed in recent
weeks – and their subsequent falls today – that isn't a fair
assessment," they added.
Bank of England Deputy Governor Dave Ramsden on Wednesday
hinted at more liquidity as he warned of higher risks to
Britain's economy from the coronavirus crisis than spelt out by
the central bank last month. Britain's services PMI showed job losses accelerated in
August despite an upturn in demand, in a bleak sign ahead of the
closure of the government's coronavirus furlough scheme at the
end of next month.
North Sea focused oil producer Enquest ENQ.L tumbled 9.6%
after it said its free cash flow of $87.5 million, generated in
the first six months of 2020, was about 37% lower from last
year.