* FTSE 100 down 0.2 percent
* Barclays slips after QIA sells stake
* Energy stocks drag
* U.S. earnings awaited
By Simon Falush
LONDON, Oct 20 (Reuters) - A sale of Barclays shares by the Qatari Investment Authority (QIA) dented banking stocks, pulling Britain's FTSE 100 index slightly lower by midday on Tuesday, but the move lifted Sainsbury shares by reviving bid talk.
At 1104 GMT, the FTSE 100 <.FTSE> was down 12.59 points, or 0.2 percent, at 5,268.95, after ending 1.8 percent higher on Monday at 5,281.54, a new peak for 2009 on the 22nd anniversary of the "Black Monday" stock market crash of 1987.
Barclays
This led to a jump in supermarket group J Sainsbury shares
"It is indicative of the market that a stock will rise if there's any good or credible talk of takeover," said Jim Wood-Smith, head of research at Williams de Broe in Exeter.
Sainsbury and the QIA declined to comment.
Other banks were mixed. Heavyweight HSBC
EARNINGS WATCH
Third quarter earnings from the United States have boosted market sentiment and ensured that equity indexes were close to 13-month highs, and investors will closely watch a further swathe of results due for release on Tuesday.
Pfizer
"It's very earnings driven. There have been a very few companies that have missed the number but enough that have beaten them by a country mile to help keep markets broadly firmer," Wood-Smith said.
"Today Caterpillar is key as it's a good bellwether for the global construction industry."
Energy stocks were under pressure, with crude
Autonomy
Miners were a net positive for the index, with players extending Monday's gains amid optimism over improved demand as corporate earnings recover.
Rio Tinto
Xstrata
Pearson