* FTSE 100 down 0.7 pct at close, but near Oct. 11 record
* Sterling edges back up on currency markets
* FTSE 100 down around 6 pct in 2016 in dollar terms
(Adds detail, updates prices at close)
By Kit Rees and Sudip Kar-Gupta
LONDON, Oct 12 Britain's index of leading shares
slipped on Wednesday from record highs reached in the previous
session, partly reflecting currency moves which weighed on some
of its global companies.
The blue-chip FTSE 100 equity index, which hit a
record high of 7,129.83 points on Tuesday, fell 0.7 percent to
close at 7,024.01 points. The FTSE 250 mid-cap index
fell 0.7 percent but also remained near record highs reached
The dollar dipped while sterling rebounded a touch from this
month's brutal sell-off as British Prime Minister Theresa May's
offer to give lawmakers some scrutiny of the process behind
Britain's plans to leave the European Union calmed market fears
of a "hard Brexit".
That dollar weakness weighed on FTSE 100 companies which
measure much of their revenues in dollar terms, such as
pharmaceuticals group Shire and engineering group Rolls
Royce, which both fell on Wednesday.
"I would not want to buy into the FTSE at these levels,"
said Horizon Stockbroking director Kyri Kangellaris.
Mining companies rose, however, with Glencore,
Anglo American and Rio Tinto all gaining between
0.9 to over 6 percent as the price of copper firmed on
supportive inventory data.
The slump in sterling, which remains under pressure due to
concerns over Brexit, has been a key factor for the UK stock
market as Britain's most international firms stand to benefit
from higher repatriated earnings and stronger exports.
The pound's drop has boosted many of the FTSE 100's
international companies which earn much of their revenues in
U.S. dollars, and therefore get a currency-related accounting
lift as those dollars are converted back to pounds.
But it has also impacted the U.S. dollar value of the FTSE
100 -- a potential negative for international investors whose
benchmark reference is the dollar, with the FTSE 100 down 6
percent so far in 2016 in U.S dollar terms.
A weaker pound can also hit consumer confidence, which often
impacts small and medium-sized companies, although the FTSE 250
mid-cap index has been supported by corporate takeover activity
and signs of economic resilience following the Brexit vote.
Shares in UK mid-cap housebuilder Telford Homes
advanced on Wednesday after it said it had not changed its
growth targets since the June 23 referendum.
Fidelity International fund manager Kevin O'Nolan said he
preferred the FTSE 100 to the FTSE 250 index.
"I have added a position favouring the FTSE 100 versus the
250. The 250 is more exposed to any slowdown in the domestic
economy while the 100's global companies benefit from the
weakness in sterling and improving commodity prices," he said.
(Reporting by Sudip Kar-Gupta; Editing by Catherine Evans)