Downgrades to Capita and Aggreko weigh on UK's FTSE
* FTSE 100 slips 0.2 percent, Capita and Aggreko among main fallers
* Mining stocks outperform on expectations of China stimulus * "Defensive" sectors favoured due to economic worries By Sudip Kar-Gupta
LONDON, Oct 9 (Reuters) - Britain's benchmark share index fell on Tuesday, as broker downgrades to Aggreko and Capita weighed on the market.
Traders said worries over the economy and company earnings would peg back the market in weeks to come.
The blue-chip FTSE 100 index was down by 0.2 percent, or 11.76 points lower, at 5,829.98 points in early morning trade.
Support services company Capita was the worst-performing FTSE 100 stock, falling 3.1 percent which traders attributed to a downgrade by brokerage Seymour Pierce, which cut its Capita rating to "hold" from "buy."
Temporary power supplier Aggreko also fell 3 percent as HSBC cut its rating on the stock to "neutral" from "overweight."
The FTSE 100 has rallied around 6 percent since late July, when major world central banks made pledges to undertake fresh stimulus measures to fight off the effects of the euro zone debt crisis and global economic slowdown.
However, the FTSE 100 has retreated around 2 percent from a peak of 5,932.62 points in mid-September.
Cheviot Asset Management fund manager David Miller did not expect the index to progress much further ahead of the U.S. elections in November, due to underlying concerns over the weak global economy.
Those concerns were highlighted on Tuesday by the International Monetary Fund, which said the global economic slowdown was worsening.
"We're still range bound, and I expect us to be in that holding pattern before the U.S. elections," he said.
BIAS TOWARDS DEFENSIVE STOCKS
Mining stocks were among the best performers on the FTSE 100, rising after a fresh injection of central bank liquidity by China - the world's top metals consumer - bolstered prospects of stimulus measures which would help boost the global economy.
Miner Rio Tinto outperformed the FTSE's decline with a 0.6 percent rise, as it forecast production growth ahead of its copper arm.
"We still see opportunities in the mining sector," said JN Financial investment manager Edward Smyth, adding that his firm had been buying stocks such as Glencore and Anglo American .
Adrian Slack, head of equities at Bastion Capital, added that he still felt that the FTSE 100 was on an "upwards trend" in terms of technical trading patterns often used by many investors.
The FTSE 100 remains above the 200, 100 and 50-day simple moving average level, which some traders have used as a sign that the market should hold its ground.
However, Cheviot's Miller said the economic uncertainty meant he would still stick with "defensive" equity stocks - such as food, healthcare or consumer goods companies seen as most resilient to an economic downturn - than riskier areas such as the mining sector.
"The defensive is still the consensus trade," he said.
(Reporting by Sudip Kar-Gupta. Editing by Jeremy Gaunt.)
Keywords: MARKETS BRITAIN STOCKS/OPEN