FTSE dips as economic woes weigh

By Michael Taylor

LONDON (Reuters) - The blue-chip index ended more than 1 percent lower on Monday as economic concerns pulled down banking and mining shares but bid talk buoyed hotel and coffee-shop chain Whitbread (WTB.L).

The FTSE 100 .FTSE slipped 63.9 points, or 1.1 percent at 5,831.6 to notch five successive sessions of declines.

A flat start to trading on Wall Street failed to support the benchmark index, which has now fallen 9.7 percent this year.

"Today has seen the market pausing for breath after the steep falls on Friday," said David Jones, chief market strategist at IG Index.

"Once again, UK traders have been keeping an eye on the U.S. with Wachovia bringing its quarterly results forward four days and announcing its first loss in nearly seven years on the back of (soured) sub-prime (loans)."

Wachovia WB.N, the fourth-largest U.S. bank, posted a surprise first-quarter loss, hurt by credit problems, and said it would cut its dividend and raise capital.

"Maybe everyone is still a bit punch-drunk after Friday and have yet to fully digest the implications this has for other banks," added Jones.

European shares were also weak, with the FTSEurofirst 300 index .FTEU3 unofficially dipping 0.8 percent with Friday's disappointing earnings from General Electric (GE.N) and weak U.S. consumer sentiment fresh in the memory.