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* FTSE 100 down 0.1 pct
* Cobham jumps 6 pct on MS upgrade
* Indivior gains as U.S. court blocks generic drug
* Energy stocks stage turnaround
By Helen Reid
LONDON, June 18 (Reuters) - Britain's top stock index fellon Monday as trade tensions between the United States and Chinakept the pressure on equity markets across Europe.
The FTSE 100 was down 0.1 percent by 0840 GMT, atits lowest since May 30 but substantially outperforming otherEuropean stock markets. Germany's DAX was down 0.8percent while the STOXX 600 fell 0.5 percent.
The British market was helped by strong financial and energystocks, while a weaker pound also boosted the market's mainlyexporting companies. Germany, meanwhile, is home to big autosstocks which are in the firing line of trade tariffs.
Trump announced hefty tariffs on $50 billion of Chineseimports on Friday, laying out a list of more than 800strategically important imports from China that would be subjectto a 25 percent tariff starting on July 6, including cars.
China said it would respond with tariffs "of the same scaleand strength" and that any previous trade deals with Trump were"invalid."
Oil stocks were the biggest weight but jumped suddenly intopositive territory after a report that OPEC was discussing amore modest output hike of 600,000 barrels a day boosted crudeprices.
Crude was falling earlier after China threatened duties onAmerican crude imports, while supply from OPEC and Russia wasalso expected to rise.
Oil majors BP and Royal Dutch Shell turnedfrom the biggest drag to the biggest boost to the index, stillhowever rising only 0.3 to 0.5 percent.
Speculation was rife ahead over what forward productionpolicy would be decided by the OPEC producer cartel at a meetingon Friday.
Mid-cap exploration and production firm Premier Oilfell 2 percent, and oil services firms Petrofac and WoodGroup also fell.
Petrofac declined 1.7 percent as a negative note from MorganStanley also weighed.
Analysts at the broker said the market's focus was onwhether Petrofac had sufficient liquidity to repay the October$677 million bond in cash or whether additional capital will berequired.
Mining stocks were also a drag on the FTSE as copper pricesslipped to a near two-week low on pressure from a strongerdollar and as a holiday in China drained buying interest fromthe market.
Glencore, BHT Billiton and Anglo Americanfell 0.9 to 1.4 percent.
In dealmaking news, mid-sized bank CYBG sealed adeal to acquire Virgin Money for 1.7 billion pounds,creating Britain's sixth-largest bank by assets in a bid tochallenge the country's top four lenders.
Virgin Money shares initially rose more than 2 percent,before reversing course to trade down 2.5 percent. CYBG shareswere down 0.8 percent.
Also among mid-caps, Cobham shares jumped 6.2percent after Morgan Stanley upgraded the defence stock to"overweight" from "equal-weight".
"We think current management have stabilised performance,with necessary costs sunk and measures taken to aid operationaldelivery," they wrote.
"With multi-year upcycles beginning in core defence andaerospace markets, and other niche exposures appearing to be ator close to the bottom, we see consensus underpinned."
Shares in drugmaker Indivior also jumped 5.4percent after a U.S. court granted a temporary restraining orderblocking Dr Reddy's Laboratories from launching a genericversion of the firm's best-selling opioid addiction treatment.
It was still far from recovering its losses on Friday whenthe stock sank 27 percent.
(Reporting by Helen Reid)
