UPDATE 2-FTSE felled by Trump tariff threat, China data gloom

* FTSE 100 down 0.8%, FTSE 250 down 0.7%
* Threat of tariffs on Mexico hits financials, miners
* Recession fears make safe haven assets desirable
* Housebuilders knocked after Nationwide data
* AIM-listed Stride Gaming up on Rank takeover offer

(Adds news items, graphic, updates to closing prices)
By Shashwat Awasthi
May 31 (Reuters) - London's FTSE 100 fell almost 1% on
Friday after U.S. President Donald Trump's threat of tariffs on
Mexico and disappointing manufacturing data from China stoked
global downturn fears.
The main index .FTSE hit a more than two-and-a-half month
low, while the mid-cap FTSE 250 .FTMC fell 0.7%, with both
recording their first monthly falls this year.
Data on Friday showed China's factory activity shrank more
than expected in May, another of the economic ramifications of
the Sino-U.S. trade dispute. "The worry is who's next on Trump's list - the EU may be
next," Markets.com analyst Neil Wilson said. "Coming at a time
of a breakdown in talks with China, it's another blow to bulls
and we should consider further downside risks from escalation."
Financial stocks fell .FTNMX8350 more than 1% and miners
.FTNMX1770 were off almost 2%, while exporters such as British
American Tobacco BATS.L , Diageo DGE.L and Unilever ULVR.L
suffered as the dollar weakened USD/ .
"With Trump on the trade war path, it is tough to see how
risks to markets aren't tilted even more to the downside,"
Cityindex analyst Ken Odeluga said.
But the macroeconomic uncertainty aided precious metals
miner Fresnillo FRES.L , which gained 2.8%. Utilities also
advanced as investors sought out assets like gold and some
defensive stocks.
Housebuilders .FTNMX3720 fell after mortgage lender
Nationwide said British house price growth had eased to its
slowest in three months, pointing to the continuing impact of
Brexit on consumer sentiment. AIM-listed Stride Gaming STRST.L surged 25% on its best
day ever after it agreed to a takeover by Rank Group RNK.L ,
which said the deal would create the number two player in UK
online bingo, lifting its shares by 4.7%. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
FTSE performance in May 2008-19 https://tmsnrt.rs/2WzLcxq
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