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* FTSE 100 down 0.2 pct
* Barclays leads the index after beating expectations
* BAT hit by strong pound
* ITV gives away early gains despite strong profits
By Alistair Smout
EDINBURGH, July 30 (Reuters) - Britain's top share indexedged lower on Wednesday as traders digested mixed earningsreports, with Barclays lending support to the index asit benefitted from falling costs.
While Barclays' underlying profit fell 8 percent in thesecond quarter, first-half profit came in 10 percent ahead ofexpectations, helped by falling operating costs.
The bank traded 3.2 percent higher, the top FTSE 100 gainer, hitting a one month high.
"Barclays was much better than expected, and whileenthusiasm will be slightly sapped by declining profits in theinvestment bank division, it's no surprise to see a bit ofrelief this morning," said Matt Basi, senior sales trader at CMCMarkets.
Other earnings were less well-received.
British American Tobacco was a heavyweight faller,with the strong British pound and a slight decline in volumehitting revenue and profit. The sixth biggest stock in theindex, it was down 0.8 percent in early deals.
ITV was the index's top faller, down 2.3 percent,even after posting a better-than-expected 11 percent rise inprofit.
Though it opened up 2.4 percent, it came off sharply aftertouching its highest level since 2001, with traders saying the210p level was acting as resistance.
It was also unclear whether or not a rumoured takeover bidby U.S. firm Liberty Global would materialise afterITV's CEO said there had been no contact with the company's newshareholder other than a courtesy call.
"A question on a lot of investor lips has been: 'Is thisenough for Liberty Global to increase their stake or make anoffer for the whole company?'," said Tom Robertson, trader atAccendo Markets.
The reversal in ITV coincided with a weakening of themarket, with the FTSE 100 down 0.2 percent to 6,793.01 at 0806GMT, having been flat in early trade.
Having risen 0.3 percent on Tuesday, the index was backbelow the 6,800 level, which it has oscillated around for thelast week. It remains 1.5 percent off a 2014 high hit in May.
The market has come under pressure in recent months as thecrisis in eastern Ukraine has threatened to boil over, mostrecently after Russian-backed rebels were blamed for the downingon July 18 of Malaysian passenger jet over Ukraine.
New European and U.S. sanctions on Russia were largelypriced in and so had little impact after they were announced onTuesday, traders said. (Editing by Catherine Evans)
