Miners, banks push FTSE down, U.S. data hits risk

* FTSE down 0.9 percent as U.S. data dents sentiment

* Miners weighed by demand concerns

* Banks lower, stress test details eyed

* Retailers wane as Marks reports slowdown

* Sainsbury rallies on renewed Qataris talk

By David Brett

LONDON, July 7 (Reuters) - Britain's top shares fell early on Wednesday, led down by miners and banks, tracking weakness in global markets overnight after U.S. data left sentiment bearish over the sustainability of the economic recovery.

By 0756 GMT, the FTSE 100 .FTSE was down 46.57 points at 4918.43 or 0.9 percent, having enjoyed a strong rally on Tuesday, up 2.9 percent, at 4,965.00, its highest closing level since June 28.

London's blue chips echoed falls in Asian markets overnight and a softening on Wall Street towards its close on Tuesday, after service sector activity in the U.S. showed economic growth in June, but at its slowest pace since February, fuelling worries over sluggish economic recovery.

"A lot of measures are coming in weaker than expected," said Angus Campbell, head of sales at Capital Spreads.

"The cause for concern is that we won't be able to sustain growth when all these austerity packages go through. That's what's causing any up-tick in equity prices to be short-lived."

Recovery worries weighed on demand for metals which also prompted a sell-off in the mining sector, which was one of the biggest beneficiaries of the previous day's rally.

Rio Tinto (RIO.L) and Xstrata (XTA.L), down 2.5 and 2.1 percent respectively, have resurrected plans to spend billions of dollars on projects in Australia after reaching an agreement with the government on a so-called super-tax on miners' profits, according to the Daily Telegraph.

Banks retreated from Tuesday's gains and ahead of details of Europe-wide bank stress tests, which are likely to emerge today.

HSBC (HSBA.L), down 1.5 percent and Lloyds Banking Group (LLOY.L), off 0.8 percent, were the top fallers in the sector.

Energy firms were also weaker along with the price of crude CLc1 as markets worried about waning consumption after the U.S. data, with Royal Dutch Shell (RDSa.L) and BG Group (BG.L) both 0.8 percent lower.

BP (BP.L), however, bucked the sector trend rising 2.5 percent after the U.S. official overseeing the response to the oil spill in the Gulf of Mexico said late on Tuesday that drilling of a relief well to halt the gushing oil is a week ahead of schedule. [ID:nLDE6650FT]

TASTE THE DIFFERENCE

Britain's third-biggest grocer, J Sainsbury (SBRY.L) was one of only a handful of risers on the FTSE 100 supported by talk of stake building by the Qataris.

The Daily Mail's market report said there was revived speculation that the Qataris could soon increase their shareholding in Sainsbury to 29.9 pct prior to launching a renewed 9.32 billion pounds or 500 pence a share cash offer.

But other retailers struggled, with Marks & Spencer (MKS.L) falling 2.4 percent after it posted a third consecutive rise in underlying quarterly sales, though its rate of improvement slowed a little and it joined rivals in sounding cautious about the consumer outlook. [ID:nLDE6650VH]

The update dented sentiment in the sector, which was also weighed by a downbeat note from RBS, which initiated its coverage on Marks with a "sell" rating.

Next (NXT.L), Burberry (BRBY.L) Kingfisher (KGF.L) and Home Retail (HOME.L) fell between 1.4 and 3.6 percent.

British shop price inflation eased for a second month running in June, thanks to cheaper seasonal food and retailers offering soccer World Cup discounts to lure in shoppers, a survey showed on Wednesday. [ID:nLDE6650TY]

The rate at which British recruiters filled permanent jobs fell for a third month running in June, and the industry fears a sharper slowdown when public spending cuts takes effect, a survey showed on Wednesday. [ID:nLDE6651D7]

Ex-dividend factors took 0.49 points off the index on Wednesday, with British Land (BLND.L), Burberry (BRBY.L) and Vedanta Resources (VED.L) all losing their payout attractions. (Editing by Karen Foster)