Global growth woes hit FTSE; banks, commods fall

* FTSE down 1.0 pct on global growth woes, UK data

* Banks, commods slide as risk appetite wanes

* U.S. points to lower open, data eyed

By David Brett

LONDON, Aug 31 (BestGrowthStock) – Britain’s top shares were lower
by midday on Tuesday, as U.K. economic data added to uncertainty
surrounding the global recovery, with risk-sensitive banks and
commodity stocks leading the fallers.

Weak mortgage lending pushed total net lending to its
lowest since March, Bank of England figures showed, despite an
unexpected rise in British mortgage approvals and consumer
credit in July. [ID:nLDE67U0XA]

By 1055 GMT, the FTSE 100 (.FTSE: ) shed 50.86 points, or 1.0
percent at 5,150.70, erasing the 0.9 percent gain on Friday, as
UK traders returned to their desks after a public holiday on
Monday.

The UK data came after U.S. President Barack Obama fell
short of addressing worries the recovery is faltering, and the
Bank of Japan’s emergency moves failed to curb the yen’s
strength.

“Investors have wobbled but we’re still trading in that
two-month range between 5,100 and 5,400 with little to prompt a
breakout,” Jimmy Yates, head of equities at CMC Markets said.

“Downbeat noises from the U.S. and month-end approaching
have aided a clear out in riskier assets.”

Energy (.FTNMX0530: ) and mining (.FTNMX1770: ) stocks took most
points off the FTSE, falling in tandem with commodity prices as
the outlook for global demand clouded over, and as risk appetite
ebbed.

Miner Lonmin (LMI.L: ) dropped 2.3 percent, and oil major BP
(BP.L: ) shed 1.4 percent as Hurricane Earl followed a path toward
the U.S. East Coast. [ID:nN31214161]

Kazakhstan will double its crude oil export duty next year
and raise taxes on high earners, the finance minister said on
Tuesday, while indicating miners may escape the Central Asian
state’s drive to swell its coffers. [ID:nLDE67U0UT]

The banking sector (.FTNMX1770: ) retreated, with Barclays
(BARC.L: ) off 2.7 percent.

British outsourcing company Serco Plc (SRP.L: ) was a top
faller, down 2.9 percent as BofA Merrill Lynch cut its rating to
“neutral” from “buy” ahead of the UK spending review in October.

The UK benchmark fell back below 5,187.41, its 38.2 percent
Fibonacci retracement level of the peak in April to the low on
July 1.

U.S. CONCERNS WEIGH ON FTSE

U.S. stock index futures (DJc1: ) (SPc1: ) (NDc1: ) pointed to a
lower open for Wall Street on Tuesday, extending a sharp decline
in the previous session.

Investors will watch for the U.S. June Case/Shiller house
price index due at 1300 GMT, August’s Chicago PMI due at 1345
GMT, and Conference Board consumer confidence for August due at
1400 GMT, for clues as to the state of the World’s largest
economy.

On the upside, chipmaker Arm Holdings (ARM.L: ), which has
been the subject of M&A speculation involving its customer Apple
Inc (AAPL.O: ) recently, rose 4.4 percent after U.S. peer Intel
Corp (INTC.O: ) unveiled a deal on Monday to buy German chipmaker
Infineon Technologies AG’s (IFXGn.DE: ). [ID:nLDE67P1WH]

British distributor Bunzl (BNZL.L: ), which supplies carrier
bags, take-away boxes and hard hats, gained 2.0 percent after it
beat forecasts with an 8 percent rise in first-half profit after
completing two acquisitions and signalling it would buy more in
the coming year. [ID:nLDE67U04Q]

“Despite the fact that corporate earnings have been fairly
strong both sides of the pond, unfortunately the bears are in
the driving seat in as much as there are now concerns around
whether that is sustainable for the third quarter,” Richard
Hunter, head of UK Equities at Hargreaves Lansdown Stockbrokers
said.

(Editing by Erica Billingham)

Global growth woes hit FTSE; banks, commods fall