* FTSE 100 eases after Tuesday's sharp gain
* Man Group loses one-fifth of value on client outflows
* BG Group rises on Goldman upgrade, bid speculation
By Dominic Lau
LONDON, Sept 28 (Reuters) - Britain's top share index fell on Wednesday, a day after posting its biggest one-day percentage gain in 16 months, as investors reconsidered expectations that euro zone policymakers would act aggressively to resolve the debt crisis.
However, gains in integrated oils offered some support, with BG Group up 4.3 percent on a Goldman Sachs upgrade to "conviction buy" and on a revival of bid speculation.
Global stocks, including those in the UK, were buoyed in the past few sessions on hopes that European leaders would increase a 440 billion euros firefighting fund to avoid bankruptcy in Greece and stop the spread of the crisis to Italy and Spain.
The plan, however, faces stiff opposition in Germany, while a suggestion from German Chancellor Angela Merkel that parts of a planned new 109 billion euro rescue for Greece could be renegotiated created some uncertainty.
"The FTSE has rallied this week on hopes that something positive is coming from Europe regarding the bailout package, but also the markets are rallying on quarter-end (buying)," Jawaid Afsar, a trader at Securequity, said.
"Overall, I still believe the market is confined to a downward trend."
Illustrating investors' concerns over the euro zone, UK banks fell 1.5 percent. The sector has fallen 27 percent this year, partly on concerns that any disorderly Greek debt default would hit European banks hard and lead to a banking crisis.
By 1126 GMT, the FTSE 100 was down 15.94 points, or 0.3 percent, at 5,278.11, after rallying 4 percent on Tuesday, its biggest one-day percentage gain in 16 months. The benchmark is still down 10 percent year-to-date.
Hedge fund manager Man Group was the top loser on the index, down 19.2 percent to hit a five-week low after reporting a surge in client outflows.
"We are not favouring the UK at the moment. We remain cautious about Europe. We still think emerging markets are preferable," said a London-based analyst, who covers global asset allocation.
"At the moment everything is about flight-to-quality and risk aversion, and preservation of capital and income generation are two key things. So from the UK, investment-grade credits would be a source of income. Companies still have cash on their balance sheets and they can pay you."
Credit Suisse Private Banking, however, raised UK equities to "overweight" in its global equity allocation, citing valuation, investor positioning and signals from the Bank of England that it was on the verge of pumping in more money to support the economy, potentially as soon as October. (Editing by David Holmes)
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