* FTSE 100 edges down 0.1 pct ahead of U.S. jobs data
* Chinese company's bond default weighs on Burberry, miners
By Sudip Kar-Gupta
LONDON, March 7 Britain's top equity index
slipped, as a landmark corporate bond default in China, the
world's top metals consumer and a big luxury goods market, hit
Burberry and mining stocks.
Investors were also avoiding placing big bets before U.S.
jobs data, due out at 1330 GMT, that may sway the near-term
direction of the market.
The blue-chip FTSE 100 index was down by 0.2
percent, or 3.34 points, at 6,777.01 points by 1157 GMT.
The FTSE 350 Mining Index fell 0.9 percent,
weighed down by a fall in the price of copper on concerns about
slower economic growth in China.
Those concerns were compounded by an unprecedented Chinese
domestic bond default after loss-making solar equipment producer
Chaori Solar missed an interest payment.
Analysts said the landmark default was likely to force a
re-pricing of credit risk in a market that has long assumed even
high-yielding debt carried an implicit state guarantee.
Traders said the fall-out from these signs of possible
strains in the Chinese economy was also affecting Burberry, for
which China has been a major engine of growth.
"The China bond default is impacting companies exposed to
that region, such as the miners and Burberry," Beaufort
Securities chief investment strategist Mike Franklin said.
U.S. JOBS DATA
Uncertainty over how to interpret the U.S. employment data,
and tensions between Russia and Ukraine also weighed on global
U.S. hiring probably picked up enough in February to keep
the Federal Reserve on track in terms of a reduction to its
monetary stimulus programme, although the size of the gain is
expected to be modest as the economy struggles to break from the
grip of severe winter weather.
U.S. non-farm payrolls data is seen as rising 149,000 last
month, with the jobless rate holding at a five-year low of 6.6
percent, according to a Reuters survey of economists.
JNF Capital trader Rick Jones said he would buy into the
FTSE 100 if it fell to the 6,720-6,730 point level, given his
expectations that the FTSE would rally later in the year to
challenge record highs in the 6,900-7,000 point region.