* FTSE 100 down 0.3 percent
* Banks weak, but GDP, retail sales data limits losses
* Index bounces from technical support level
By Simon Falush
LONDON, Sept 28 (Reuters) - Weaker banks and energy stocks
pushed Britain's top share index lower by midday on Tuesday,
although firm economic data helped the market bounce off early
lows in skittish trade.
By 1053 GMT, the FTSE 100 <> was 14.41 points, or 0.3
percent lower at 5,559.01, after it fell 0.5 percent on Monday.
However it was well off the day's low of 5,506.07 set earlier in
the session. The index is still up 6.3 percent this month.
Worries over the debt situation in peripheral euro zone
countries kept investors wary, but data that showed Britain's
recovery is on track and that retail sales were stronger than
forecast, prompted a slight move back into equities.
S&P said Ireland's cost of Anglo Irish bank recapitalisation
could exceed 35 billion euros ($46.70 billion) and trigger
further rating downgrades. []
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Graphic on Europe's struggles with debt:
http://r.reuters.com/hyb65p
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Britain's economy grew at its fastest pace in nine years in
the second quarter of 2010 and first quarter growth was revised
slightly higher, the Office for National Statistics said on
Tuesday.
British retail sales rose much more than expected and at
their fastest pace in over six years in September, a survey by
the Confederation of British Industry showed on Tuesday.
The CBI's monthly distributive trades survey's reported
sales balance jumped to +49 in September from +35 in August, the
highest reading since May 2004. Analysts had forecast +25. The
data helped to lift sterling <GBP=>.
"There's been a reaction to the UK GDP numbers. There was
relief that there was no revision to the downside. There was
always a risk that there would be," said Angus Campbell, head of
sales at Capital Spreads.
Risk sensitive banks were the biggest drag on the index.
Barclays <BARC.L> lost 0.7 percent while HSBC <HSBA.L> fell 0.6
percent.
Elsewhere among financials hedge fund firm Man Group <EMG.L>
was a heavy loser, down 2.9 percent, the top blue-chip faller,
after it said clients had pulled out assets for an eighth
straight quarter.
But among mid-caps British mortgage provider Paragon
<PARA.L> gained 5.3 percent after it said it will resume lending
to buy-to-let landlords after securing fresh funds.
ENERGY DRAG
Energy stocks were also weighed by weaker commodity prices,
with crude <CLc1> down nearly 1 percent. Royal Dutch Shell
<RDSa.L> lost 0.3 percent while BG Group fell 0.5 percent.
Across the Atlantic, September U.S. consumer confidence
data, due at 1400 GMT, should be the main interest for investors
this afternoon.
Losses were widespread, with TUI Travel <TT.L> off 1.3
percent after an update from midcap rival Thomas Cook <TCG.L> in
which it said it was looking to cut costs and streamline its
operations amid continuing uncertainty over economic conditions.
Thomas Cook <TCG.L> fell 7 percent.
Software company Sage Group <SGE.L> was the top gainer, up
2.2 percent having touched a high since March 2007, with traders
citing bid interest from SAP AG <SAPG.DE>.
(Editing by Mike Nesbit)
