(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window) * FTSE 100 down 0.8%, FTSE 250 off 0.5% Sept 8 (Reuters) - British shares slipped on Wednesday, dragged by heavyweight financial and consumer staple stocks, while Dunelm Group jumped to the top of mid-cap index after posting upbeat annual results. The blue-chip FTSE 100 index fell 0.8%, while the domestically focused mid-cap FTSE 250 index declined 0.5%. Banking shares shed 1.2%, with big lenders Barclays and Lloyds Banking Group slipping 1.4% and 1.3%, respectively, after Morgan Stanley cut its price targets on the stocks. Consumer staples, including Dove soap maker Unilever , spirits maker Diageo and tobacco company British American Tobacco, dropped 1% each to weigh the most on the FTSE 100 index. Dunelm Group gained 7.2% after the home furnishing retailer forecast 2022 profit before tax ahead of analyst expectations and declared a special dividend of 65 pence. Smiths Group rose 3.2% to the top of FTSE 100 index after the technology company agreed to sell its medical unit to U.S.-based ICU Medical Inc for $2.4 billion and withdrew its backing for the deal with private equity firm TA Associates. (Reporting by Devik Jain in Bengaluru; editing by Uttaresh.V) Our Standards: The Thomson Reuters Trust Principles.