* Energy stocks weak, tracking lower crude prices
* Marks & Spencer falls after warns of tough 2010
* Food and general retailers under pressure
By Harpreet Bhal
LONDON, Jan 6 (Reuters) - Britain's leading shares were down
0.3 percent around midday on Wednesday as energy stocks mirrored
weakness in crude prices, while retailer Marks & Spencer was the
standout faller after a disappointing trading update.
At 1149 GMT, the benchmark FTSE 100 <> index had shed
14.34 points to 5,508.16, reversing early gains made after
hitting its highest closing level in 16 months on Tuesday at
5,522.50.
Energy stocks were the biggest drag on the index as a rally
in crude prices faltered <CLc1>. BG Group <BG.L>, BP <BP.L>,
Royal Dutch Shell <RDSa.L> and Cairn Energy <CNE.L> fell between
0.5 and 0.8 percent.
Analysts also attributed falls on the index to jitters ahead
of key economic data set for release this week, including the
U.S. non-farm payrolls data on Friday and the Bank of England
policy decision on Thursday.
"What we have seen is simple profit taking as a precaution,
with the markets entering into a raft of crucial economic data
over the next three days," said Joshua Raymond, market
strategist at City Index.
Marks & Spencer fell 4.9 percent after it posted its first
rise in quarterly underlying sales for over two years but missed
analysts' forecasts and joined rivals in warning of an uncertain
2010. []
Within the retail sector, Home Retail <HOME.L> and
Kingfisher <KGF.L> were down 0.6 and 0.9 percent, respectively,
while Next <NXT.L> edged up 0.1 percent.
Food retailers were also lower. Sainsbury <SBRY.L>, which
releases a trading update on Thursday, dropped 1.1 percent,
while peers Tesco <TSCO.L> and Wm Morrison <MRW.L> shed 1.6 and
0.7 percent. A ratings downgrade by brokers Jefferies also
weighed on Tesco.
CONFIDENCE DENTED
The Nationwide Building Society's consumer confidence index
fell to 69 from an upwardly revised 74 in November, after
respondents sharply scaled back their expectations for the
coming year. []
Meanwhile, British service sector activity accelerated
slightly in December after the strongest growth in new orders
since September 2007, but firms also faced rising costs, a
survey of purchasing managers showed on Wednesday.
[]
Later in the session, U.S. ADP National Employment figures
for December, due at 1315 GMT, will be a focus ahead of Friday's
non-farm payrolls data.
Among sector gainers were defensive tobacco firms, with
British American Tobacco <BATS.L> and Imperial Tobacco <IMT.L>
up 0.4 and 0.5 percent, respectively. BAT also benefited from an
upgrade by Nomura to "buy" from "reduce".
Other defensive firms, which benefit from a perceived
safe-haven appeal, also gained, with BT Group <BT.L> up 1.6
percent and mobile telecommunications firm Vodafone <VOD.L>
ahead 0.2 percent.
Autonomy Corp <AUTN.L> rose 2.1 percent, as the IT firm said
it expected to report in-line 2009 full-year results and saw
strong cash collection in the fourth quarter. []
ICAP <IAP.L> and Burberry <BRBY.L> were in negative
territory after going ex-dividend.
(Reporting by Harpreet Bhal, editing by Will Waterman)
