London stocks fall as concerns about US Fed's independence resurface

Aug 26 (Reuters) - British equities fell on Tuesday, as global markets went into a risk-off mode after U.S. President Donald Trump said he was firing Federal Reserve Governor Lisa Cook.

The blue-chip FTSE 100 .FTSE was down 0.6% by 0940 GMT, coming off its all-time highs and on track to snap a five-day winning streak.

Risk assets around the world fell after Trump said he was firing Cook over alleged improprieties in obtaining mortgage loans. Cook said in a statement that the President has no authority to remove her, but Trump's statement brought back concerns about the Fed's independence.

The pan-European STOXX 600 .STOXX was last down 0.7% and U.S. stock index futures also indicated a weak open on Wall Street.

In the UK, heavyweight banks .FTNMX301010 weighed the most on the FTSE 100, down 1.7%. Top lenders HSBC HSBA.L and Standard Chartered STAN.L slipped 1.8% and 3.1%, respectively.

British 30-year government bond yields GB30YT=RR surged to their highest level since April 9, tracking a rise in U.S. Treasuries.

UK's domestically focussed FTSE 250 midcap index .FTMC dropped 1.1%. Home improvement retailer Wickes WIX.L languished at the bottom of the index with a 9.3% fall after Deutsche Bank downgraded its rating to "sell" from "hold".

Rival Kingfisher KGF.L also lost 4.7% after Deutsche Bank cut its rating to "hold" from "buy". Primark owner AB Foods ABF.L dipped 4.6% after Deutsche Bank cut its rating on the stock to "sell".

On the flipside, business supplies distributor Bunzl BNZL.L jumped almost 4% after the company maintained its annual guidance and resumed a share buyback programme.

A basket of precious metal miners .FTNMX551030 gained 1.4% as gold prices climbed to a more than two-week high.

Last week, the FTSE 100 briefly hit an all-time high after Fed Chair Jerome Powell signalled a possible interest rate cut at the Fed's September meeting, pushing risk assets higher.

Trading resumed on Tuesday after a UK bank holiday on Monday.

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