* FTSE on track for 4th session of losses
* Miners and banks weak as risk appetite wanes
* U.S. non-farm payrolls eyed at 1230 GMT
By Harpreet Bhal
LONDON, Oct 2 (Reuters) - Weakness in miners and financials
dragged Britain's top share index 0.9 percent lower by midday on
Friday, as weak data this week increased investors' concerns,
denting risky assets ahead of U.S. non-farm payrolls data.
At 1026 GMT, the FTSE 100 <> was down 43.03 points at
5,004.78, on track to post the fourth session of losses after
ending at a two-week closing low on Thursday.
Banks, which have been at the heart of the financial crisis,
were among the big sector fallers, as investors plumped for less
risky plays. Barclays <BARC.L>, HSBC <HSBC.L>, Lloyds Banking
Group <LLOY.L>, Royal Bank of Scotland <RBS.L> and Standard
Chartered <STAN.L> lost 0.8 to 4.7 percent.
The FTSE 100 has had a wobbly start to the fourth quarter of
the year, having recorded its best gains since the index's
inception in 1984 in the three months to September.
"(The losses) are partly a reaction to the extent of the
gains through the third quarter," said Grahame Exton, fund
manager at Tilney Investment Management.
"(The weak U.S. data from Thursday) is confirming doubts
that improvements in underlying economies may not be
supportive," he said, referring to weaker-than-expected U.S.
manufacturing growth data on Thursday.
All eyes will be on U.S. non-farm payrolls data at 1230 GMT,
with economists predicting a loss of 180,000 jobs in the month,
compared with 216,000 jobs shed in August, while the
unemployment rate is seen at 9.8 percent, up from 9.7 percent
previously.
MINERS WEAK
Miners were in the doldrums as demand worries put pressure
on metal prices. Kazakhmys <KAZ.L>, Lonmin <LMI.L>, Rio Tinto
<RIO.L> and Vedanta Resources <VED.L> shed 2.1 to 4.8 percent.
Xstrata <XTA.L> fell 4.1 percent as UK regulators said it
must make a formal takeover bid for rival miner Anglo American
<AAL.L>, down 0.3 percent, by Oct. 20 or walk away for six
months as Anglo again rejected a merger.
Investors took the opportunity to book profits on the life
insurance sector, which has seen much interest recently on the
back of continued M&A speculation.
Legal and General <LGEN.L>, which is widely perceived to be
on the bid radar for either Resolution <RSL.L> or an Australian
firm, fell 4.3 percent.
L&G's shares have risen 26 percent since Monday. Goldman
Sachs removed the stock from its "Conviction Buy" list on
Friday.
Prudential <PRU.L>, Standard Life <SL.L>, Aviva <AV.L>, and
Friends Provident <FP.L> dropped 0.8 to 2.2 percent.
Economic data from the UK painted a mixed picture on Friday,
with weakening construction activity overshadowing signs of a
stabilising housing sector. []
British construction activity contracted at a faster pace in
September than in August, with the Chartered Institute of
Purchasing and Supply/Markit construction PMI index falling to
46.7 in September from 47.7 in August.
Meanwhile, British house prices rose for a fifth straight
month in September and was flat year-on-year, the Nationwide
Building Society said. []
On the upside, brokers' recommendations helped several
stocks outperform the wider index. Fund manager Schroders
<SDR.L> gained 1.6 percent, after an upgrade to "buy" from
"neutral".
Within the sector, hedge fund manager Man Group <EMG.L> and
interdealer broker Icap <IAP.L> rose 0.5 and 1.2 percent.
SABMiller <SAB.L> rose 1.4 percent, drawing strength from a
positive comment from Cazenove, which repeated its "outperform"
rating on the brewer.
(Editing by Will Waterman)
