UK equities mixed as investors assess corporate earnings amid fiscal worries

Sept 23 (Reuters) - London stocks ended mixed on Tuesday as investors assessed an assorted bag of corporate earnings alongside economic data pointing to a slowdown in British business activity.

The benchmark FTSE 100 .FTSE was down 0.04%, while the domestically focused FTSE 250 .FTMC gained 0.5%.

A survey showed British business activity slowed in early September, as companies reported a loss of momentum and confidence given the rising risk of tax increases later this year.

This follows Friday's report showing Britons have turned more downbeat this month, with the prospect of tax increases in Finance Minister Rachel Reeves' November budget threatening to further erode confidence.

Last week, the Bank of England held its benchmark interest rate at 4% and said it is monitoring for signs that inflation pressures are waning before it reduces borrowing costs again.

In the market, the broader healthcare sector .FTNMX201030 declined 1.7% with Oxford BioMedica's OXB.L 6.5% loss after the British cell and gene therapy manufacturer reported its half-year results.

Eyes were also on GSK GSK.L as U.S. President Donald Trump's administration asked drug companies to be prepared to ramp up production of leucovorin, a form of folic acid, as a treatment for some autism patients. GSK previously manufactured leucovorin and sold it under the name Wellcovorin.

Shares of the drugmaker fell 1.1%.

Keeping losses in check, an index of retailers' stocks .FTNMX404010 rose about 3.3%, boosted by a 14.6% surge in Kingfisher KGF.L after the home improvement retailer raised its full-year profit outlook after a better-than-expected first half.

Other major retailers also advanced, with JD Sports Fashion JD.L rising 1.7%, Frasers FRAS.L up 3%, and Howden Joinery HWDN.L gaining 2.3%.

Serco Group SRP.L was among the top gainers in the FTSE 250, up 4.7%, after a unit of the British outsourcing firm secured a contract to provide training and simulator services to the U.S. Air Force.

Engineering firm Smiths Group SMIN.L reported profit and revenue above market estimates, helped by strong demand for upgraded baggage-screening detectors and a recovery in the semiconductor market. Its shares hit an all-time high in early trading but later fell 3.3%.

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