* FTSE 100 closes 0.4 pct weaker
* Banks weak; Barclays falls after H1
* BoE holds rates steady as expected
By Tricia Wright
LONDON, Aug 5 (Reuters) - Britain's top shares closed lower
on Thursday, with Barclays <BARC.L> leading banking shares lower
after it posted first-half numbers and downbeat U.S. weekly
jobless claims data later in the day only adding to the downward
pressure.
The FTSE 100 <> closed down 20.38 points, or 0.4
percent, at 5,365.78, having fallen back from a session high of
5,416.76, after it ended 0.2 percent lower on Wednesday.
"More than anything else, the U.S. markets have spoilt
things today," said Angus Campbell, head of sales at Capital
Spreads.
"Jobless numbers out from the U.S. were not inspiring and
they certainly don't fill you with confidence when you've got
the non-farm payrolls tomorrow."
By London's close, U.S. blue chips <> were off 0.4
percent after an unexpected rise in first-time claims for
jobless benefits underscored concerns that the recovery in the
labour market will be slow. []
Barclays <BARC.L> fell 4.7 percent as analysts said its
investment banking performance was resilient but uninspiring,
costs rose faster than expected and Spanish bad debts remained a
worry. []
Royal Bank of Scotland <RBS.L> shed 0.2 percent, ahead of
its first-half results on Friday, while HSBC <HSBA.L> and
Standard Chartered <STAN.L> were off 0.5 percent and 0.1 percent
respectively.
But Lloyds Banking Group <LLOY.L> bucked the weak sector
trend, rising 2.1 percent in the wake of its first-half results
on Thursday, boosted further after Seymour Pierce lifted its
rating on the stock to a "hold" from "sell".
The Bank of England kept interest rates at a record-low 0.5
percent on Thursday and announced no new quantitative easing
purchases, a decision universally expected in a Reuters poll of
economists. []
And the European Central Bank also kept its interest rates
on hold, at a record low of 1.0 percent for the 15th month
running, as expected by economists. []
Unilever <ULVR.L> fell 5.2 percent as the consumer goods
group warned of a tougher second half due to higher commodity
costs and stiff competition, after reporting second-quarter
sales up a slightly worse than forecast 3.6 percent.
[]
Cobham <COB.L> was the standout FTSE 100 faller, off 6.7
percent, after the aerospace electronics group said delays in
the award of U.S. contracts could continue this year, denting
its growth prospects, after it reported an expected 2 percent
rise in first-half profit. []
INSURERS SHINE
Insurers were in demand, with Aviva <AV.L> the star FTSE 100
performer, up 7.2 percent, while RSA Insurance Group <RSA.L>
gained 3.9 percent, after both companies beat profit forecasts
in their first-half results. [] []
Among the miners, Rio Tinto <RIO.L> added 0.5 percent after
reporting a record first-half profit, driven by booming sales of
iron ore to China. []
But Randgold Resources <RRS.L> was among the top blue chip
fallers, off 5.6 percent, after the West African-focused gold
miner said its production for 2010 may fall short of its
original target by about 5 percent. []
Fresnillo <FRES.L>, which reported first-half results on
Tuesday, fell 5 percent as Citigroup downgraded its rating on
the Mexican precious metals miner to "hold" from "buy", saying
the company's share price is getting stretched.
"There has been a feeling building over the last couple of
days that the near double-digit percentage rise seen in July for
stock market indices has really come far enough for now," said
Anthony Grech, head of research at IG Index.
"And unless the U.S. (non-farm payrolls) announcement is a
lot better than expected it could well tempt more sellers back
in," he said.
(Editing by Greg Mahlich)
