UPDATE 2-British midcaps hit over 3-month low; FTSE 100 outshines

* FTSE 100 up 0.4%, FTSE 250 down 0.5%
* U.S. health officials warn pandemic likely
* Diageo down after warning on virus impact
* Engineering firm Weir tops mid-caps on results

(Adds news items, analyst comment, updates to closing prices)
By Sagarika Jaisinghani and Shashwat Awasthi
Feb 26 (Reuters) - London's mid-cap index slid to its lowest
in more than three months on Wednesday amid worries that
Britain's upcoming budget may disappoint investors, while the
FTSE 100 snapped a four-day losing run after a rally on Wall
Street.
The FTSE 250 .FTMC shed 0.5%. The export-laden FTSE 100
.FTSE , which fell to a one-year low earlier, ended 0.4% higher
as investors in the United States bought into stocks after a
recent sell-off triggered by concerns over the coronavirus. .N
Firms more exposed to the British economy underperformed and
sterling climbed lower, mainly due to concerns that new finance
minister Rishi Sunak's budget in March may not deliver the level
of fiscal spending expected by markets. GBP/
Meanwhile among blue-chips, miner Rio Tinto RIO.L and
Diageo DGE.L became the latest multinational firms hit by the
coronavirus outbreak, with the latter shedding nearly 1%.
"When you have the likes of Diageo talking numbers and how
this is going to affect profit and loss, in market terms, the
reality factor is in your face," said Keith Temperton, a trader
at Tavira Securities.
"I don't see that reversing until we see evidence of a peak
in (virus) numbers and that's not going to happen until quite
some time."
Another casualty of the coronavirus was travel-food firm SSP
SSPG.L , which skidded 5% to a more than two-year low after it
warned of a 50% fall in February sales across the Asia Pacific
region. Peer WH Smith SMWH.L gave up 3.6%. "These are neat examples of how there is a real demand
destruction that occurs when the coronavirus hits," Markets.com
analyst Neil Wilson said.
The rapid spread of the deadly virus outside China sparked a
sell-off that has erased about $3 trillion from the value of
global stocks in the past four days. MKTS/GLOB
Late on Tuesday, the U.S. Centers for Disease Control and
Prevention alerted Americans to begin preparing for a likely
pandemic. Although the disease is believed to have peaked in China,
where it first originated late last year, the resulting hit to
factory output and consumer spending has threatened global
economic growth in 2020.
Frankie & Benny's owner Restaurant Group RTN.L fell 7.2%
after saying it would reduce the number of sites in its leisure
business and temporarily suspend its dividend. Among the few gainers, engineering firm Weir WEIR.L jumped
11% on its best day since June 2010 to top the mid-caps after
posting higher annual profit.