(Corrects HSBC Reuters instrument code in 10th paragraph)
* FTSE 100 index down 0.3 percent
* Some miners lifted by firmer metal prices
* Banks retreat on bonus concerns ahead of results
By Simon Falush
LONDON, Feb 14 (Reuters) - Britain's leading share index
retreated on Monday as banks sagged, offsetting support from
miners that were buoyed by Chinese economic data.
By 1154 GMT, the FTSE 100 <> index was down 17.23
points, or 0.3 percent, at 6,045.67, having hit a 2-1/2
year-high early on. The blue-chip index closed up 0.7 percent on
Friday.
Miners <.FTNMX1770> provided the main support in London,
lifted by firmer metals prices on talk that Chinese inflation
could come in lower than expected, easing fears of further
interest rate rises from the world's biggest consumer of
commodities.
Traders said China's consumer price index may have risen 4.9
percent in the year to January, well below the consensus
forecast of 5.3 percent, a day ahead of the official release.
Meanwhile, Chinese economic data showed a smaller-than-
expected trade surplus in January as imports grew faster than
exports. [] []
African Barrick Gold <ABGL.L> was one of the biggest sector
gainers, up 2 percent.
However other miners such as Rio Tinto <RIO.L> were slightly
weaker and moves were generally relatively muted, as investors
waited for more clues on the pace of corporate recovery from
results due over coming days.
"We seem to get profit-taking after a couple of days
strength, and until fourth-quarter reporting season gets into
full throttle and we get more idea on the economy, there are not
going to be catalysts for further gains," said Richard Hunter,
head of equities at Hargreaves Lansdown.
Highlighting the tough global economic outlook, President
Barack Obama proposed a budget on Monday that would cut the U.S.
deficit by $1.1 trillion over 10 years, setting the stage for a
bitter fight with Republicans who vow even tougher spending
controls. []
BANKS LAG
Banks were the biggest fallers as a sector, with majority
state-owned Lloyds Banking Group <LLOY.L> down 1.6 percent, and
global heavyweight HSBC <HSBA.L> losing 0.7 percent.
Britain's banks need radical reform to end a culture of
paying "offensively" large bonuses, Business Secretary Vince
Cable, a long-time critic of the sector, said. []
Barclays <BARC.L>, which kicks off the sector reporting
season with full-year results on Tuesday, fell 1 percent, adding
to recent weakness.
International Consolidated Airlines Group <ICAG.L> was the
biggest individual faller, down 2.1 percent, as a number of
brokers cut target prices for the airline -- formed by the
merger of British Airways and Spanish group Iberia -- following
a warning last week from European peer Air France-KLM <AIRF.PA>.
Most energy stocks were lower but Indian-focused Essar
Energy <ESSR.L> gained 2.5 percent as BofA Merrill Lynch started
coverage of the stock with "buy".
Oil services blue-chip Petrofac <PFC.L>, up 1.6 percent got
a boost from acquisition moves in the sector.
An interview in the Financial Times quoting Siemens
<SIEGn.DE> chief financial officer saying that the German
conglomerate was interested in making acquisitions helped lift
engineering blue-chips Invensys <ISYS.L> and Weir Group
<WEIR.L>, the top two FTSE 100 gainers, up 3.1 percent and 4
percent respectively.
The FTSE 100 is up 3.1 percent in February, and is close to
its highest since June 2008.
"After the big run-up we have seen since the end of January
a phase of consolidation is arguably overdue," Yusuf Heusen,
senior sales trader at IG Index said.
(Reporting by Simon Falush; Editing by Erica Billingham)
