UPDATE 2-Miners end FTSE 100's three-day winning run

* FTSE 100 down 0.7%, FTSE 250 up 0.2%
* Miners biggest drags on main bourse
* Carmaker Aston Martin falls on forecast cut

(Adds company news items, updates shares)
By Muvija M
July 24 (Reuters) - Miners dragged London's main index to
its worst day in two months on Wednesday as iron ore prices fell
after Vale prepared to resume operations at its Vargem Grande
complex, while luxury carmaker Aston Martin lost a quarter of
its value after cutting annual targets.
The FTSE 100 .FTSE ended down 0.7%, lagging its European
counterparts which held steady on hopes of more monetary
stimulus following weak business growth data and signs of
progress in U.S.-China trade talks. The FTSE 250 midcap index
.FTMC added 0.2%. Vale SA VALE3.SA said it had been authorised to partially
resume dry processing operations at the complex in Brazil,
months after the country's mining regulatory agency had ordered
the company to halt operations there to guarantee the stability
of its dams. Rio Tinto RIO.L was among the biggest fallers with a 4.6%
drop, while Anglo American AAL.L and BHP BHPB.L were also
lower, as Liberum analysts downgraded the iron ore majors and
flagged warning signs after rising iron ore port inventories.
Exporters also weighed on the index as sterling recovered
after falling in the last session after Brexit hard-liner Boris
Johnson won the leadership of Britain's Conservative Party to
become the country's next prime minister. Investors were quick to dump financial shares, spooked by
Deutsche Bank's DBKGn.DE bigger than forecast quarterly loss
of 3.15 billion euros. The UK's big banks RBS RBS.L , Barclays
BARC.L , Standard Chartered STAN.L and Lloyds Banking
LLOY.L are set to report earnings next week. BAG
Corporate earnings on Wall Street and in Europe have been
largely positive this week.
However, data from Refinitiv highlighted the risk of an
earnings recession, as earnings at constituents of the
pan-European STOXX 600 index .STOXX are now expected to
decline this quarter, putting it at risk of back-to-back
quarterly declines. Among earnings-related moves on Wednesday, Aston Martin
AML.L dropped 25.9% after it cut its 2019 volumes forecast,
with sales to dealers in Europe down by almost a fifth in the
first half.
The guidance cut from followed a disappointing quarterly
update from German peer Daimler DAIGn.DE .
Pub operator Marston's MARS.L slumped 12% after reporting
like-for-like sales numbers that Peel Hunt analysts called
"slightly worse than we expected".
Helping contain losses on the FTSE 100 was broadcaster ITV
ITV.L , which jumped 7% after it said a strong contribution to
online revenue from reality show "Love Island" helped limit the
decline in first-half ad revenue. Event manager Informa INF.L rose 6.5% to its highest this
year, after reporting strong half-year results. Chemicals maker Croda CRDA.L , however, fell 3.3% as profit
missed expectations with the U.S.-China trade war and new
Chinese sales legislation having hurt demand at its personal
care unit.