* FTSE down 0.3 percent
* Miners pressured by weaker metal prices, banks sag
* Defensive stocks gain ground
By Simon Falush
LONDON, April 13 (Reuters) - Britain's top share index
retreated by midday on Tuesday, weighed by weaker miners as
metal prices fell, while banks also retreated on investor
caution ahead of first-quarter results in the United States.
By 1056 GMT the FTSE 100 <> was 19.22 points, or 0.3
percent lower at 5,758.43, having gained 6.67 points or 0.1
percent on Monday.
Miners were the biggest drag on the index, dented by softer
metal prices as uncertainty on the demand outlook held sway,
while results from U.S. aluminium group Alcoa <AA.N>, released
overnight, were in-line on earnings but light on revenues.
Xstrata <XTA.L>, Lonmin <LMI.L>, Anglo American <AAL.L>,
Kazakhmys <KAZ.L> and BHP Billiton <BLT.L> fell 0.2-2.3 percent.
Tech bellwether Intel Corp <INTC.O> will release
first-quarter numbers later in the day, while other major U.S.
companies due to report results this week include JPMorgan Chase
<JPM.N>, Google <GOOG.O>, Bank of America <BAC.N> and General
Electric <GE.N>.
"All we need is a couple of disappointing results and as the
market is looking quite overbought, we could see fairly sharp
falls," said Nick Serff, market analyst at City Index.
Investor nerves on Greek debt problems also undermined
sentiment although it easily sold a total of 1.2 billion euros
($1.63 billion) of 6-month and one-year T-bills, with bond fund
Pimco saying it would not be buying new Greek debt as a euro
zone rescue package fails to tackle the country's longer-term
solvency challenges.
"The Greek situation is casting a shadow over things," Serff
said.
Banks were mostly lower as investors trimmed holdings in
assets they perceived as relatively risky ahead of U.S. results,
with the Greek debt problems also weighing the sector.
Standard Chartered <STAN.L>, Barclays <BARC.L>, HSBC
<HSBA.L> and Lloyds Banking Group <LLOY.L> fell 0.3-1.1 percent.
HIGH SPIRITS
Drinks producer Diageo <DGE.L> gained 1.8 percent, supported
after luxury goods company LVMH <LVMH.PA> reported strong
quarterly sales from its wine and spirits division. French peer
Pernod Ricard <PERP.PA> was also stronger.
Other defensive stocks were in favour too as investors
sought positions in lower risk assets. Pharmaceuticals firms
AstraZeneca <AZN.L> and GlaxoSmithKline <GSK.L> added 0.2 and
0.7 percent respectively.
Department store group Debenhams <DEB.L> was among the top
mid cap losers, down 2.3 percent although it beat forecasts with
an 18.6 percent rise in first-half profits, with some analysts
saying that current trading looked less positive.
But other retailers were higher, with Kingfisher <KGF.L>,
Next <NXT.L>, Home Retail Group <HOME.L> and Marks & Spencer
<MKS.L> ahead 0.5 to 2.6 percent, following an upbeat British
Retail Consortium survey.
British retail sales rose at their fastest pace in a year in
March but the figures were flattered by the earlier timing of
Easter this year, the BRC said. []
Also signalling an improved economic outlook, Britain's
trade deficit narrowed to 6.179 billion pounds ($9.49 billion)
in February, its smallest since June 2006, after exports
rebounded strongly from weather-related weakness in January.
[]
Meanwhile the Royal Institution of Chartered Surveyors said
British house prices grew last month at their slowest pace since
July after the amount of new property coming on to the market
grew faster than the number of new buyers. []
No significant U.S. economic data is due for release on
Tuesday.
(Editing by Rupert Winchester)
