LONDON (Reuters) - Britain's top shares were lower in choppy early trade on Monday, the final trading session for April, reflecting caution ahead of another big batch of corporate earnings reports this week, and uncertainty over the euro zone debt crisis.
Data showed on Monday that Spain's gross domestic product shrank 0.3 percent in January to March on a quarterly basis, beating economists' forecasts. However, the data still showed the country slipping into another recession, which will not improve the debt-laden country's finances.
"Although the figure is not quite as bad as forecast of a 0.4 percent fall, do not get carried away with optimism - I believe that Spain is close to imploding under austerity and a property bust. It is following Ireland but without the benefits of a reformed and pro business economy," said Louise Cooper, markets analyst at BGC Partners.
Banks were lower on euro zone debt exposure concerns, and as investors awaited a continuation of the sector's reporting season.
Part state-owned lenders Lloyds Banking Group and Royal Bank of Scotland, which will issue Q1 updates later this week, went in different directions, down 0.5 percent and up 0.4 percent respectively.
At 0832 GMT, the FTSE 100 index was down 23.04 points, or 0.4 percent at 5,754.07, having closed 0.5 percent higher on Friday, which was a fourth straight-session of gains after posting a sharp percent drop last Monday.
The UK blue chip index looks set to end April below the 5,768 level at which it started the month after a volatile performance.
Drug stocks provided the main strength for the blue chips led by AstraZeneca, up 1.1 percent, as both JPMorgan Cazenove and Jefferies upgraded their ratings for the firm, which suffered big falls last Thursday after accompanying first-quarter results with the shock departure of its chief executive.
GlaxoSmithKline, up 0.6 percent, also continued its recovery after a disappointing reaction to results last week.
ABERDEEN HIGHER
Aberdeen Asset Management was a big blue chip gainer, up 2.0 percent, after the fund manager saw its underlying pre-tax profit rise 14 percent in its first half year after a recovery in client risk appetite boosted assets under management and the funds house improved its fee margins.
"Aberdeen has announced a strong set of interim results with margins and the balance sheet continuing to strengthen," said Peel Hunt in a note.
However, the broker downgraded its rating for Aberdeen Asset to "hold" from "buy" as it things the share price currently looks up with events and it would suggest that active funds should consider locking in some profits.
Hedge fund manager Man Group was the top FTSE 100 faller, down 4.6 percent ahead of a first-quarter trading update due on Tuesday, with the stock having had a good run ahead of the numbers helped by some broker upgrades.
Multi-utility Scottish & Southern Energy was also weak, down 2.7 percent as JPMorgan Cazenove reduced its target price to 1.190 pence from 1,205 pence.
No important British macroeconomic data were scheduled for release on Monday, with little due all week aside from a trio of Markit/CIPS PMI indexes for April, and Bank of England consumer credit and mortgage lending data on Wednesday.
Across the Atlantic, following Friday's weaker than expected GDP data, investors will eye March U.S. personal income and consumption data - the Federal Reserve's preferred measure of inflation - due at 1230 GMT on Monday, and Chicago April PMI data, due at 1345 GMT, for further clues as to the state of the world's biggest economy.
The main focus, however, will be on the key April U.S. jobs report due on Friday.
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