* FTSE 100 down 0.7 percent
* Energy stocks weighed by falling oil prices
* Miners dented by softer metals
By Simon Falush
LONDON, July 10 (Reuters) - More gloom on prospects for the
global economy sparked by weak U.S. corporate results depressed
commodity prices, knocking energy stocks and dragging Britain's
top share index to a 10-week low by midday on Friday.
By 1028 GMT the FTSE 100 <> was down 24.00 points at
4,134.66 after it closed 18.43 points higher on Thursday at
4,158.66. The index is on track for its lowest close since late
April, down 2.4 percent this week, set for its fourth
consecutive week in negative territory.
Energy stocks took the most points off the index as oil
prices slid below $60 per barrel, on track for its largest
weekly fall since January <CLc1> as the demand outlook soured
and on fears of new rules to curb futures speculation.
BP <BP.L>, Royal Dutch Shell <RDSa.L>, BG Group <BG.L>,
Tullow Oil <TLW.L> and Cairn Energy <CNE.L> fell between 0.5 and
1.1 percent.
"The oil price has come off in the last few weeks and that
has chilled the mood for commodities," said Lars Kreckel, equity
strategist at Exane BNP Paribas.
A downbeat earnings outlook from U.S. oil major Chevron Corp
<CVX.N> also dented sentiment on the sector and the wider
economy.
Kreckel said earnings from U.S. and European companies over
the next few weeks would be critical for giving the market
direction.
"In general I would expect them to meet or beat analyst
expectations but it will be difficult to meet investor
expectations," he said, adding that he expects defensive stocks
and cyclical laggards to outperform.
Underlining the fragile state of the British economy,
factory costs fell in June at their sharpest annual rate since
1997 and output prices dropped at their fastest in 7-1/2 years,
in a sign inflation will fall sharply in the coming months.
[]
MINERS HAMSTRUNG
Miners were hamstrung by weaker metal prices, with Kazakhmys
<KAZ.L>, Eurasian Natural Resources <ENRC.L>, Anglo American
<AAL.L>, Lonmin <LMI.L> and BHP Billiton <BLT.L> falling between
0.2 and 2.1 percent.
Anglo American has appointed veteran industrialist John
Parker as its new chairman on Friday replacing Mark Moody-Stuart
who will retire after seven years at the helm. []
Parker will retain his post as chairman of British energy
provider National Grid Plc <NG.L>.
Rio Tinto <RIO.L> was the sharpest blue-chip faller, down
2.9 percent, dogged by the detention of four employees by
Chinese authorities for leaking China's "bottom line" in iron
ore price negotiations, according to a source with knowledge of
the probe. []
U.S. May international trade numbers and the first reading
for July of the University of Michigan consumer sentiment index
will be a focus later in the session.
But overall trade has been thin after a sharp bounce since
early March has begun to reverse over the last month.
"Investors who made some money during the upturn in March,
April and May are now reluctant to get back into the market and
risk those gains," said Arifa Sheikh-Usmani.
"Volumes in equities have all but dried up which adds to
investors reluctance to get back in to the market at the present
time."
Retailers were broadly higher, with traders citing the low
interest rate environment and positive broker commentary from
the previous session as supportive.
Home Retail <HOME.L> was the biggest riser, up 3.8 percent,
while Kingfisher <KGF.L>, Tesco <TSCO.L>, Next <NXT.L> and Marks
and Spencer <MKS.L> added 1.2-2.2 percent.
Among other stocks in positive territory, publishing group
Pearson <PSON.L> added 1.8 percent after Credit Suisse upgraded
it to "outperform" from "neutral" and property developer Liberty
International <LII.L> gained 1.1 percent after UBS upgraded it
to "neutral" from "sell".
(Reporting by Simon Falush; Editing by Hans Peters)
