* FTSE 100 down 0.8 percent ahead U.S. GDP figures
* Miners wane on U.S. concerns and China growth
* Inmarsat higher on LightSquared deal
By David Brett
LONDON, Jan 28 (Reuters) - UK economic pressures and caution
ahead of U.S. GDP figures forced investors on to the sidelines
as Britain's top shares fell on Friday, with miners the top
fallers hit along with weak metal prices.
By 1211 GMT the FTSE 100 <> was down 48.21 points, or
0.8 percent, at 5,916.87 after it edged 0.1 percent lower on
Thursday.
BHP Billiton <BLT.L> fell 2 percent, dragged lower as
jitters about prospects for the economic outlook ahead of U.S.
growth data depressed metal prices.
Investors focus will turn to the U.S. this afternoon when
the world's biggest economy will announce its latest GDP
figures, due at 1330 GMT, with some fearing expectations are too
optimistic.
"Some traders feel (the growth expectation) is a little over
optimistic given (that) the lingering unemployment rate and
depressed housing market are still major issues for the U.S.
economy," Jonathan Sudaria, a dealer at Capital Spreads, said.
The economy grew at a solid 3.5 percent annual rate in the
final three months of 2010, according to a Reuters survey, after
expanding at a 2.6 percent pace in the third quarter.
[]
London's blue chip index began the year in a bullish mood
putting on more than 3 percent as traders returned from the
Christmas and New Year break.
However, gains have been pared as macroeconomic pressures
have prompted uncertainty among investors and brought the index
back to almost flat on the year.
"There's an element of caution in the UK market with
concerns particularly around China," David Jones, chief market
strategist at IG Index, said.
"China might be looking to keep a cap on growth and
inflation under control, and because there are so many mining
stocks in the FTSE, whenever we have those worries that knocks
the index."
RETAILERS WOE
UK retailers were under pressure after data showed British
consumer confidence tumbled to its lowest in almost two years in
January. []
Marks & Spencer <MKS.L> fell 1.2 percent while home
improvements chain Kingfisher <KGF.L> lost 1.5 percent, and as
the sector continued to feel the knock on effect from European
peer Hennes & Mauritz's <HMb.ST> downbeat results on Thursday.
Tui Travel <TT.L>, which reported its first-quarter update
in the previous session, feel 3.3 percent as Natixis cut the
stock to "neutral" from "buy".
On the upside, Inmarsat <ISA.L> rose 3.4 percent after
confirming the second phase of the cooperation agreement with
U.S. firm LightSquared, which brokers said could see upside to
market expectations for the value of Inmarsat's U.S. spectrum.
Technical analysts said charts point to a bearish outlook
for the blue-chip index.
"Wednesday's rally stopped at 6,003.28 and the market closed
below the lower end of the retracement zone at 5,965.88 on
Thursday," said James Hyerczyk, analyst at Autochartist.
"The weak close may be indicating that traders are reluctant
to chase this market higher and could be waiting for a
substantial break to drive this index into a more attractive
value area."
(Editing by Hans Peters)
