* FTSE 100 slips 0.2 percent in second day of losses
* Economic growth concerns weigh ahead of earnings season
* UBS suggests put strategies to protect gains
By Toni Vorobyova
LONDON, Oct 9 (Reuters) - Britain's benchmark share indexeased for a second session on Tuesday, with a batch of gloomyeconomic data underscoring downside risks from the impendingthird quarter corporate earnings season.
UK factory output shrank more than expected in August, andexports fell steeply versus the previous month, data showed,pointing to deterioration both in the domestic and the globaleconomy.
The International Monetary Fund forecast that the UK economywould contract 0.4 percent this year versus growth of 0.2percent expected in July, and combining this with a moredownbeat view on global growth.
"We've had headlines reminding us that the risk to growth isthere," said Jack Pollard, analyst at Sucden Financial.
"It's quite a cautious start."
The FTSE 100 was down 14.23 points, or 0.2 percent, at5,827.51 points by 1033 GMT , adding to a 0.5 percentdrop the previous session and performing broadly in line withother European indexes.
Sectors more exposed to swings in economic growth, such asretailers and household goods wereamong the weakest performers.
Miners , however, bucked the generally weakertrend thanks to heavyweight Rio Tinto , which reassuredinvestors with a forecast of solid copper output growth incoming years and greater pricing transparency.
However, the update from the world's second-largest iron oreminer added a note of caution, saying it was uncertain when thestimulus measures unveiled by U.S., European and Chinese centralbanks would translate into more buoyant global demand.
Third quarter results from U.S. aluminium giant Alcoa, which traditionally kick off the U.S. and UK reportingseasons, will offer more clues on metals demand after the close.
In the UK, third quarter earnings are seen down on average7.5 percent year-on-year, according to Thomson Reuters Starmine,with energy, materials and financials set to perform the worst.
The latter have been hit hard by troubles in the euro zonethanks to their high exposure to the region's sovereign debt.
Concerns about the euro zone remained in the spotlight onTuesday, with bond yields edging higher as Spain continued todrag its feet over a formal bailout request needed to kick-startthe European Central Bank plan to ease the crisis throughsovereign bond purchases.
With the FTSE 100 up 11 percent since the start of June, therisks around the euro zone, economic growth and earnings couldmake further gains this year tough to achieve.
"There's a lot of good news regarding policy response andliquidity in the price already but uncertainty remains ahead ofthe U.S. presidential election and the ongoing crisis inEurope," said James Ferguson, strategist at WesthouseSecurities. The FTSE 100 could struggle to get through thepsychologically key 6,000 mark, he said.
Investors wishing to protect their profits could do so viaoptions, taking advantage of relatively cheap pricing, with theUBS derivatives team recommending a put-spread structure.
Buying a December 2012 put - which gives the right to sellat the strike price - for 5,700 points and selling a 5,400 putcosts an indicative 1.06 percent, UBS said.
(Additional reporting by Alistair Smout; Editing by LouiseIreland)
Keywords: MARKETS BRITAIN STOCKS/MIDDAY