* FTSE 100 down 0.4 pct
* Holding above 6,500 seen key to retain upside bias
* BG drags on output warning
* Syria, Fed uncertainty keeps broad market volume subdued
By Toni Vorobyova
LONDON, Sept 9 Britain's top share index
retreated from three-week highs on Monday, with a warning of
lower output from energy major BG and simmering concerns
about Syria outweighing strong Chinese data.
BG dropped 4.7 percent to head for its biggest one-day fall
in nearly a year after saying delays at projects in Egypt and
Norway would reduce its 2014 production by around 30,000 barrels
of oil equivalent per day.
Although the issues were seen as largely specific to BG, the
company's size - as one of the 10 biggest weights in the FTSE
100 - mean its shares alone took some 8 points off the index.
Broad sentiment was also hurt by the prospects of U.S.
intervention in Syria, with Senate voting on the issue possible
as soon as Wednesday.
The FTSE 100 was down 24.94 points, or 0.4 percent, at
6,522.39 points by 1026 GMT, retreating from Friday's
three-week highs but finding some technical support around the
30- and 50-day moving averages to cap the losses.
"We've seen a sell off and it's starting to test down
towards 6,500 so it seems that some of that better than expected
Chinese data has been clouded by Syria," said Brenda Kelly,
analyst at IG Markets.
"As long as we can stay above 6,500 level the bias is still
to the upside for the market. Looking at individual companies,
there is a mixed bag ... BG cut its production outlook for the
third time in a year and clearly investors do not like the sound
Analysts at Liberum called BG's 2014 and 2015 guidance
"disappointing", but concluded that the long-term growth profile
for the company justified valuations which at first glance may
appear "relatively expensive".
On the flip side, Burberry was a top gainer, up 2.1
percent thanks to a price target upgrade from HSBC and to strong
data from key market China, where trade figures offered fresh
signs of economic stabilisation.
Aside from the top risers and fallers, volumes on the market
were limited, with activity on the FTSE 100 at only around a
quarter of the 90-day daily average going into mid-session.
Alongside waiting for developments in Syria, some investors
were also staying out of the market to wait for more clarity on
whether the U.S. Federal Reserve will scale back its stimulus
programme as soon as this month and, if so, by how much.
"After Friday's slightly disappointing (U.S.) non-farm
payroll numbers, it is still a waiting game as to the U.S.
trimming their bond buying programme," Mark Ward, head of
trading at Sanlam Securities said ahead of the next Federal
Reserve meeting starting early next week.
(Additional Reporting by David Brett; Editing by Toby Chopra)