* FTSE 100 index closes 0.1 percent lower
* Chinese trade data puts pressure on miners
* Burberry jumps on impressive quarterly sales
By Atul Prakash
LONDON, July 10 Britain's top share index ended
slightly weaker on Wednesday, led lower by miners as
disappointing Chinese trade data raised fresh concerns about the
pace of growth in the world's biggest metals-consuming country.
China, the world's second-largest economy, warned of a
"grim" outlook for trade after a surprise fall in June exports,
the first drop since January 2012.
The UK mining index, down 1.6 percent, was the
biggest decliner as share prices of miners such as Fresnillo
, Vedanta Resources, Randgold Resources
and Anglo American fell 1.4 to 5 percent on worries that
global demand for raw materials might fall.
"The decline in imports, especially for commodities, may
pressure metal prices further," Gerard Lane, equity strategist
at Shore Capital, said, referring to a 14 percent decline in
copper prices and a 12 percent drop in aluminium prices
so far this year.
"With Chinese authorities' willingness to tolerate lower
growth, there may not be the rapid easing of policy that could
have been expected given the historical track record."
Investors also traded cautiously ahead of the release of the
minutes from the latest Federal Reserve meeting and a speech by
the Fed Chairman Ben Bernanke, which could provide hints about
the central bank's likely move to trim stimulus measures.
The blue-chip FTSE 100 ended 8.12 points, or 0.1
percent, lower at 6,504.96, after rising in the past two days.
"We've seen a sub 8 percent rally in the FTSE since the June
low. We may see some exhaustion, but a pull back presents an
opportunity to continue to accumulate," Mike Jarman, chief
market strategist at H2O Markets, said.
Jarman said the housing developers in the UK looked strong
in terms of forward earnings as they were getting support from
the government. However, gold miners were expected to face
another tough quarter following a recent decline in gold prices.
Charts showed the FTSE 100 could face some selling pressure
in the near term, but its longer-term outlook remained positive.
"We could see a short-term pull back, although the downside
potential seems to be very limited. A monthly close above 6,610
is very important as it would suggest a break of a longer-term
falling trendline from its 2000 highs," Roelof-Jan van den
Akker, senior technical analyst at ING Commercial Banking, said.
On the positive side, luxury brand Burberry rose
4.9 percent after posting a better-than-expected increase in