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FTSE 100 falls 0.5%, FTSE 250 drops 0.3%

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BP rises 2.3% on forecasting higher upstream output for Q2

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SSP Group ( SSPPF ) slumps on UBS downgrade

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Personal goods lead sectoral declines with Burberry ( BBRYF ) down

2%

July 11(Reuters) - London's main stock indexes slipped

on Friday as weaker-than-expected GDP data and escalating

U.S.-led trade tensions weighed on sentiment, a day after the

blue-chip FTSE 100 hit a record high.

The internationally oriented FTSE 100 fell 0.5% by

0925 GMT but was on track for a third week of gains. The midcap

index dropped 0.3% and was also set for weekly gains.

Britain's economy shrank for a second consecutive month in

May, as declines in industrial output and construction

outweighed growth in services, adding to domestic challenges for

Finance Minister Rachel Reeves.

"It will now take something quite special for the UK to

avoid an outright contraction in GDP in Q2, which doesn't appear

at all likely quite frankly given the perfect storm of downside

risks," said Matthew Ryan, head of market strategy at global

financial services firm Ebury.

Meanwhile, U.S. President Donald Trump ramped up his trade

war by announcing 35% tariffs on Canada on Thursday, while

adding that blanket tariffs of 15% or 20% would be implemented

on most other trading partners.

Sectoral gains on Friday were led by precious metal miners

with safe-haven gold rising on the expanding

trade war.

Fresnillo added 2% while Hochschild and

Endeavour rose 1.6% and 1%, respectively.

Energy giant BP shares rose 2.3% to top of the

blue-chip after the company forecasted a higher upstream output

production for second-quarter driving gains for oil and gas

stocks.

Losses on the day were led by personal good stocks

with luxury brand Burberry dropping

2.2%. Dr. Martens ( DOCMF ) fell 1.5%.

Traders are currently pricing in a 78.6% chance of a rate

cut during August's Bank of England meeting, according to data

compiled by LSEG.

Among individual stocks, restaurant chain operator SSP Group ( SSPPF )

was the top loser on the midcap, falling 6.6% after UBS

downgraded it to "sell".

($1 = 0.7384 pounds)