FTSE off 1 percent on weak U.S. data

By David Brett

LONDON (Reuters) - The top share index shed 1 percent on Tuesday in the wake of weaker than expected consumer confidence figures in the United States, with banks, miners and food retailers leading the fallers.

The FTSE 100 .FTSE index closed 44.82 points lower at 4249.21.

However, the index is up 8.2 percent on the quarter, the best such performance since the final quarter of 2003 and it has gained 22.8 percent since touching a six-year low on March 9.

U.S. data showed consumer confidence fell in June after two straight months of gains and Americans saying jobs are "hard to get" increased to 44.8 percent from 43.9 percent the previous month.

The news came on the back of UK figures that revealed the economy contracted at a much sharper pace than initially thought, falling by 2.4 percent in the first quarter, revised down from a fall of 1.9 percent. The fastest rate in more than 50 years.

"(The) session has descended into a degree of carnage after the release of some worse than expected U.S. consumer confidence figures," David Fineberg, head of trading at CMC Markets.

Falling crude prices at under $70 a barrel helped send oil majors lower. BG Group (BG.L), BP (BP.L) and Royal Dutch Shell (RDSa.L) fell between 1 and 1.8 percent.

BG Group also said it would pay Dallas-based Exco Resources (XCO.N) $1.3 billion (789 million pounds) for an interest in shale gas resources, as oil and gas firms continue to snap up assets before an economic recovery drives prices higher.

Miners dropped between 0.5 and 3.1 percent, with Randgold Resources (RRS.L), Anglo American (AAL.L), Fresnillo (FRES.L), Eurasian Natural Resources (ENRC.L) and Xstrata (XTA.L) the biggest fallers.

"Some of it is window dressing ... locking in profits from gains seen over the last few days," said Stephen Pope, chief global strategist at Cantor Fitzgerald.

Xstrata confirmed its $1 billion estimate of synergies from its proposed merger with Anglo American after UK newspaper the Times had reported advisors as saying the figure could be much higher.

Banks also headed south. Lloyds Banking Group (LLOY.L), Royal Bank of Scotland (RBS.L), HSBC (HSBA.L) and Standard Chartered (STAN.L) shed between 0.9 and 3 percent. However, Barclays (BARC.L) was an exception, up 1.2 percent.

Astrazeneca (AZN.L) fell 1 percent after the company and its drug development partner Pozen (POZN.O) submitted their experimental two-in-one pain drug PN400 for regulatory approval in the United States.

Also on the downside, life insurers Prudential (PRU.L) and Legal and General (LGEN.L) fell 0.6 to 2.2 percent, retreating from some strong gains made on Monday.

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