* FTSE 100 down 0.1 percent
* Banks down; stress tests due at 1600 GMT
* Miners gain, supported by firmer metals prices
By Tricia Wright
LONDON, July 23 (Reuters) - Britain's top share index edged
lower in midday trade on Friday, pressured by banks ahead of the
outcome of European bank stress tests, while firmer metals
prices buoyed the mining sector.
By 1102 GMT, the FTSE 100 <> was off 5.22 points, or
0.1 percent, at 5,308.59, falling back slightly after it closed
up 99.17 points, or 1.9 percent, on Thursday at 5,313.81.
Banks took the most points off the index, retreating after
good gains in the previous session, as investors awaited the
outcome of an examination by regulators of the financial
strength of banks across Europe.
The results are not due until 1600 GMT, after the market's
close. []
Standard Chartered <STAN.L> and HSBC <HSBA.L> were the worst
off, shedding 1.9 percent and 1.3 percent respectively, with
Standard Chartered hit by a downgrade in rating by UBS.
A survey by Goldman Sachs showed investors expect 10 out of
the 91 European banks that have undergone stress tests to fail,
the broker said in a note. []
"The market is just treading water ahead of the stress test
results," said Angus Campbell, head of sales at Capital Spreads.
Miners made up ground, building on the previous session's
advance against a backdrop of firmer metals prices following
recent reassuring U.S. data.
Kazakhmys <KAZ.L> and Anglo American <AAL.L> were the best
sector performers, putting on 2.7 percent and 1.3 percent
respectively.
Positive economic data showed Britain's economy growing
almost twice as fast as expected in the second quarter of this
year, propelled by a sharp pick-up in services and the biggest
rise in construction in almost 50 years. []
Among individual movers, chip designer ARM Holdings <ARM.L>
grabbed the top spot on the blue-chip leader board, up 6.9
percent after it signed a new licensing agreement with software
giant Microsoft <MSFT.O>. []
ARM was also boosted by a read-across from Microsoft, which
on Thursday easily beat Wall Street forecasts with a 48 percent
rise in quarterly profit. []
Vodafone <VOD.L> rose 0.6 percent after the mobile operator
returned to growth in the first quarter with a 1.1 percent rise
in organic service revenue helped by improvements in Germany,
Britain and Turkey. []
United Utilities <UU.L> climbed 0.4 percent as the water
utility reported trading in line with expectations.
[]
United Utilities shares also found support as Morgan Stanley
upgraded its rating to "overweight" from "equal-weight" while
hiking its target price.
No important U.S. economic data will be released on Friday,
and the flow of U.S. corporate earnings slows slightly, with
results from restaurant group McDonald's <MCD.N> and telecoms
firm Verizon <VZ.N> the main features.
(Editing by Michael Shields)
