Weak banks, miners pull Britain's FTSE index lower

* FTSE 100 down 0.3 percent

* Banks, miners weak on further dull economic data

* Oils rally; BG supported by RBS upgrade

By Jon Hopkins

LONDON, June 10 (Reuters) - Britain's leading share index was weaker approaching midday on Friday, weighed down by falls from banks and miners as further data added to fears about the health of the global economy.

At 1152 GMT the FTSE 100 <.FTSE> index was down 18.16 points, or 0.3 percent at 5,838.18, retreating afetr having added 0.8 percent in the previous session after a late rally.

Risk-sensitive miners <.FTNMX1770> were a big drag on the index, tracking falls in metal prices after Chinese trade data showed a surprising drop in copper imports in May from April. [ID:nL3E7HA0DV]

Domestic data was also a depressant. British factory output fell at its sharpest monthly pace in two years in April due to an extra public holiday for the Royal Wedding and supply chain disruption from Japan's earthquake. [ID:nLDE7590NO]

"Though manufacturing production fell more than expected, a lot of special factors were at play in April and we would not read too much into this one month's figures," said Hetal Mehta, UK economist at Daiwa Capital Markets Europe.

"We certainly do not expect manufacturing to make as big a contribution to GDP growth in Q2 as in Q1," Mehta added.

Banks were the weakest blue chip sector, mainly due to a fall by global heavyweight HSBC , down 0.9 percent, with the rest of the sector mixed.

Drugmaker AstraZeneca , down 1.3 percent, also sp weighed on the blue chips as Barclays Capital downgraded its rating for the firm to "underweight" from "overweight" in a downbeat review of the European pharmaceuticals sector.

And broadcaster ITV was a big faller, off 1.9 percent as watchdog Ofcom launched a review of how advertising is sold in Britain's 4 billion-pound television market, with trading practices largely unchanged in 20 years. [ID:nLDE7590P0]

ITV also suffered as broker Berenberg started coverage of the stock with a "sell" rating and 69 pence target price.

OILS RALLY

Integrated oils rallied from early falls, led by BG Group , up 0.1 percent as RBS lifted its rating on the shares to a "buy" from a "hold" with an increased target price of 1,525 pence.

"We currently see an attractive entry opportunity following a recent pullback in the shares," RBS said, raising estimates in the sector after increasing its average oil price forecast.

Tesco was a top blue chip gainer, ahead 0.9 percent, as Jefferies International upgraded its rating for the retail giant to "buy" from "hold" ahead of a trading update due on Tuesday.

"With a strong capital structure and meaningful property backing other meaningful attractions, we believe the stock is now worth owning," Jefferies said in a note.

And electronic chip designer ARM Holdings gained 1.9 percent, with traders citing a bullish note from Redburn Partners.

"It is the clear conclusion from our analysis that ARM's increasing popularity in non-mobile devices and highly defendable market share in mobile devices will continue to sustain its exorbitant growth in royalties," Redburn said. (Editing by Greg Mahlich)