Compass drop weighs on FTSE, trade hopes soften blow

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* FTSE 100 down 0.1%, FTSE 250 flat

* Compass Group slips after warning on Europe performance

* De La Rue sinks after suspending dividend

Nov 26 (Reuters) - London’s main index edged lower on Tuesday as a near 7% slide in catering firm Compass Group offset gains in miners that were driven by hopes of a resolution to the U.S.-China trade dispute.

The FTSE 100 gave up 0.1%, with Compass tracking its worst day since July 2014 after the company said deteriorating business and consumer confidence hit performance in Europe. The FTSE 250 was roughly flat.

Losses were contained as hopes that the Sino-U.S. trade dispute could end soon gained traction after top negotiators from Washington and Beijing held a phone call to try and hammer out a preliminary “phase one” deal.

Small-cap De La Rue, which last month hit its lowest level in over two decades after a profit warning, plummeted 16% after suspending its dividend and posting a near 90% plunge in first half adjusted operating profit. (Reporting by Shashwat Awasthi and Safia Infant in Bengaluru; Editing by Shounak Dasgupta)