* FTSE down 1.8 percent
* Miners weigh as commodity prices slip
* HBOS up ahead of Lloyds TSB shareholder meeting
* BoE minutes stoke rate-cut expectations
By Nick Vinocur
LONDON, Nov 19 (Reuters) - Britain's top share index was 1.8
percent lower by midday on Wednesday, dragged down by miners and
banks as global recession fears remained predominant despite the
prospect of a likely further loosening in monetary policy.
At 1210 GMT the FTSE 100 <> index was 76.39 points
lower at 4,132.16 having closed 76.39 points, or 1.9 percent,
higher on Tuesday.
Miners were a big drag on the FTSE 100 index as plummeting
demand in the auto sector pushed commodity prices lower, with
aluminium hovering close to three-year lows and copper dropping
by 3.7 percent.
"When it comes to commodities, of course deflation is a
major issue, but that won't always be the case," said Jeremy
Batstone, an equities strategist at Charles Stanley.
"In two or three years' time we will be embarking on the
first leg of a synchronized global upturn, at which point we'll
see increased demand for oil," Batstone added.
Xstrata <XTA.L> shed 6.3 percent, while Lonmin <LMI.L>
dropped 9.3 percent, Vedanta Resources <VED.L> fell 6.8 percent,
and Rio Tinto <RIO.L> lost 2.6 percent.
Some banks were also big FTSE 100 losers after J.P Morgan
Securities slashed its earnings estimates on the UK banking
sector and cut share-price targets. []
HSBC <HSBA.L> dropped 5.6 percent, with WestLB also cutting
its rating to "sell" from "reduce", while Barclays <BARC.L> lost
6.2 percent, and Standard Chartered <STAN.L> fell 1 percent.
"Banks remain very much in the spotlight as we're heading
into a recession that will be deep and long," said Batstone.
"Investors are seeing a round of forecast reductions and a
swathe of profit warnings. Generally speaking, that is the
really serious sentiment problem the market is facing at the
moment," Batstone added.
HBOS shares were up 8.9 percent, however, on hopes that
Wednesday's meeting of Lloyds TSB <LLOY>L> shareholders will
secure government funding and OK the takeover of HBOS <HBOS.L>.
Lloyds TSB shares gained 1.6 percent.
Minutes from the last Bank of England meeting showed
policymakers voted unanimously in November to slash rates by 150
basis points and even considered a deeper cut.
Interest rate futures rose as the minutes reinforced
expectations of further rate cuts in the next few months, but
markets showed little immediate reaction. []
Meanwhile, British factory orders fell sharply in November
and manufacturers gave their gloomiest projections about future
output in nearly 30 years, according to a monthly survey from
the Confederation of British Industry. []
Insurer Legal & General <LGEN.L> was a big blue-chip faller,
down 8.7 percent as Deutsche Bank cut its target price.
Credit information firm Experian <EXPN.L> was a top FTSE 100
riser, up 11.1 percent after robust first-half results and
saying third-quarter revenue growth should also be solid.
Ex-dividend factors took 12.52 points off the blue-chip
index on Wednesday.
(Reporting by Nicholas Vinocur; Editing by Erica Billingham)
