* FTSE 100 down 2 pct
* FTSE 250 down 1.8 pct
* Sterling rise hits international companies
* Weak data from Europe, U.S. also weighs
* Pearson gains on upgrade, bullish comments from JPM
* All sectors on both UK indexes end in the red (Adds news item, analyst comment, updates to closing prices)By Muvija M and Yadarisa ShabongMarch 22 (Reuters) - London's FTSE 100 retreated frommulti-month highs to endure its worst day so far this year as asurge in the pound weakened exporter stocks and poormanufacturing data from the euro zone and the United Statespulled the index deeper into the red.The FTSE 100 shed almost 150 points as it sank 2percent and the more domestically-exposed FTSE 250 slipped 1.8 percent or almost 350 points. Both indexes sufferedtheir worst day since December.Sterling rallied after the euro weakened and as EuropeanUnion leaders gave Prime Minister Theresa May two more weeks,until April 12, to decide how to leave the European Union."It's clear the EU for now doesn't want to be seen to forceBritain out, but its patience won't last forever," Markets.comanalyst Neil Wilson said.Weighing on the main index were drug maker AstraZeneca , which hit a high in the last session on the pound'sweakness, British American Tobacco and Diageo ,the world's largest spirits company."The pound may want to enjoy its gains while it still can -it is in for another go around on the Brexit rollercoaster nextweek," said Spreadex analyst Connor Campbell.Poor manufacturing data from Europe and the United Statesimplicated trade tensions for hurting factory output and onceagain fanned fears of an economic slowdown.CMC Markets analyst Michael Hewson said there would probablybe a lot more concern about a global manufacturing recessionfollowing the downbeat German data, which he called unexpected.
The worry led to losses across the board on FTSE 100 withfinancials falling to their lowest since Jan. 14.Oil majors Shell and BP also dragged as crudeprices slipped, capping off a forgettable day for the mainbourse. Housebuilders , which tend to be most exposed toany economic hit, handed back early gains to be down 1.4percent.
Pearson , however, rose 1.7 percent after JP Morganupgraded its rating and said the education publisher's modeladjustment from print to digital would see long-term growth Among midcaps, Aggreko , the world's largesttemporary power provider, rose 3.5 percent as brokerage Stifelupgraded the stock.Struggling department store group Debenhams plummeted over 45 percent after saying some restructuringoptions it was considering would result in no equity value forits shareholders. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Uk & European markets lag Wall St. since Brexit referendum ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Muvija M and Yadarisa Shabong, additionalreporting by Shashwat Awasthi in Bengaluru; editing by GarethJones)
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