* FTSE 100 steady
* RSA slumps to 1-1/2 year low, CS sees scope for more bad
* Broader market cheered by global economic improvement
By Toni Vorobyova
LONDON, Nov 11 Britain's FTSE 100 index
steadied in early trade on Monday, cheered by signs of
improvement in the global economy although any upward momentum
was capped by falls in RSA and BSkyB.
Insurer RSA slumped 11.4 percent in heavy volumes after it
commissioned an independent review of its financial and
regulatory reporting processes and controls and suspended three
senior executives at its Irish unit.
The announcement, which sent the shares to their lowest
level since June 2012, came a week after a profit warning,
prompting analysts at Credit Suisse to downgrade the stock to
'underperform' from 'neutral' and voice concerns that more
negative news flow could follow.
The second biggest faller on the FTSE 100 was BSkyB,
down 9.4 percent after BT beat it to win the rights to
show Champions League soccer from 2015.
ITV fell 3.0 percent, while BT itself was also down,
by 2.2 percent, as investors fretted about the cost of the deal
and its impact on an increasingly competitive UK media market.
"The most action that we've seen this morning has been from
BT and Sky, with BT paying an extraordinary amount of money to
get the right to show Champions League and Sky losing those
rights," said Vinay Sharma, trader at Gekko Global Markets.
"Initially I saw a lot of liquidations as the market opened
down and positions got stopped out, but now we are seeing some
clients coming in to buy Sky."
The relatively light weighting of Monday's major fallers in
the FTSE 100 - BT, BSkyB, ITV and RSA together add up to just
over 2.5 percent - limited any losses for the broader market.
The blue-chip index was broadly flat at 6,709.73 points by
0841 GMT, with the majority of sectors in the black
following gains on Wall Street on Friday.
Chinese data over the weekend showed stronger than expected
growth in factory output and solid growth in retail sales in the
world's top metals consumer. That followed U.S.
numbers showing more jobs being created in the world's biggest
economy than expected by even the most optimistic analyst.
"Finally, markets are reacting rationally to economic data,"
analysts at Credit Agricole CIB said in a note.
"While the data added further weight to the potential for
Fed tapering in December or January it was also recognised as
evidence of a growing economy, and one that barely flinched in
the wake of the government shutdown."
(Editing by Patrick Graham)