* FTSE 100 down 0.6%, FTSE 250 down 0.2%
* Sterling strength hits exporters
* Markets to remain shut on Wednesday
(Adds news item, graphic, updates to closing prices)
By Shashwat Awasthi
Dec 31 (Reuters) - London's FTSE 100 declined for the second
straight session on Tuesday, as traders booked year-end profits
after the index's best run in three years and as a stronger
pound hit shares of exporter firms.
The FTSE 100 .FTSE , which rose for 11 consecutive days
earlier this month, fell 0.6% as a stronger sterling dragged
exporter stocks such as BAT BATS.L and AstraZeneca AZN.L
lower.
The mid-cap FTSE 250 .FTMC edged 0.2% lower in thin
trading, as most investors were away during another
holiday-shortened week.
"As the New Year holiday is falling mid-week, I suspect we
will have to wait until Monday to see which way financial
markets wish to throw the kitchen sink as the new budget year
begins," OANDA analyst Jeffrey Halley said.
After a year of topsy-turvy swings in sentiment around the
U.S.-China trade dispute, global central bank policy, British
politics and Brexit, receding worries on all fronts have fuelled
sharp gains for UK markets in December.
Tensions between the United States and China have eased and
hopes of concrete progress on the trade front were bolstered on
Monday when White House trade adviser Peter Navarro said the
countries would likely sign a deal early next year. British Prime Minister Boris Johnson's election victory and
prospects of a clear process towards leaving the European Union
on Jan. 31 have been cheered, as has the stance of the U.S.
Federal Reserve and its peers to hold interest rates steady for
the time being.
This cocktail helped the FTSE post its best month since June
and a 12% annual gain - its biggest since 2016. The mid-caps
enjoyed their best month since January and surged 25% for the
year, their best performance since 2013.
Investors will now shift focus to 2020, looking for the
finer details of a Phase 1 U.S.-China trade deal, as well as
Britain's negotiation of a free trade agreement with the
European Union.
UK markets will remain closed for New Year's Day on
Wednesday.
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