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* FTSE 100 up 0.4%, FTSE 250 rises 0.3%
* Markets look for updates on coronavirus, Fed policy
* McCarthy & Stone down as top investor to cut stake
Jan 29 (Reuters) - UK shares continued their rebound, albeit in subdued trading, after a steep sell-off earlier this week on rising fears over the potential impact from the coronavirus, while dealers also looked ahead to a U.S. Federal Reserve policy meeting.
The FTSE 100 index rose 0.4% and the FTSE 250 index , which slumped more than 2% on Monday, climbed 0.3% on Wednesday.
The death toll from the China-linked virus has risen to 132. Investors are still mulling over how the outbreak will affect the global economy. Meanwhile, the Fed is likely to leave interest rates unchanged, but may address future headwinds due to the virus.
Overall trading volume was light. McCarthy & Stone slid 5% as its biggest shareholder plans to slash its stake in the midcap retirement homebuilder. (Reporting by Shashwat Awasthi in Bengaluru; Editing by Bernard Orr)