* FTSE 100 down 1.2 pct at close
* Cyclicals lead losses
* Micro Focus up after co agrees software biz sale(Adds detail, updates prices at close)
By Kit Rees
LONDON, July 2 (Reuters) - Britain's index of leading sharesbegan July on a negative note as worries over global trade keptthe pressure on banking and mining stocks, though Micro Focuswas lifted by news of the sale of one its software businesses.
The blue chip FTSE 100 index ended the session down1.2 percent at 7,547.85 points, slightly underperforming abroadly negative European market which was hit by concerns overglobal trade and German politics.
Market sentiment remains tense ahead of a July 6 deadlinewhen the U.S. is set to impose $34 billion of tariffs on Chineseexports.
On the FTSE, sectors which are most sensitive to theeconomic cycle, such as banks, miners and oil stocks, took themost points off the index.
Miners Rio Tinto, Glencore, Anglo American, Antofagasta and BHP Billiton all fellbetween 3 percent to 3.5 percent as the price of copper hit athree-month low.
Likewise energy heavyweights BP and Royal Dutch Shellboth retreated around 1 percent as the oil price cameunder pressure.
In the banking sector, shares in HSBC, Lloydsand Barclays were down 1.2 to 1.9 percent.
"Until Trump actually does strike some sort of deal, mostimportantly with China, that draws a line under the tradeuncertainty for the time being, I think it's going to be frontand centre," said Jasper Lawler, head of research at LondonCapital Group, referring to global trade.
"Clearly there are some bargains to be picked up in emergingmarkets, in some mining stocks ... in the FTSE have been prettybeaten up," added Lawler.
There were a few risers, however, with Micro Focusleading the 10 or so stocks in positive territory. Shares in thesoftware company rose 1.5 percent after it said that it hadagreed to sell its Linux operating system SUSE business to aprivate equity fund for $2.535 billion.
Shares in Micro Focus remain down nearly 47 percent so farin 2018. The firm said that it would use some of the proceedsfrom the sale to reduce debt and could return some of the restto shareholders.
While British mid caps were also on the backfoot, Playtechwas a prominent faller, its shares down more than 26percent after the gambling technology company said that revenuefrom Asia would be lower than originally expected.
At the other end of the index, shares in mining conglomerateVedanta Resources soared 26.5 percent after the familytrust belonging to its chairman agreed to buy the rest of thecompany, in a deal that values the firm at 2.3 billion pounds($3 billion).(Reporting by Kit Rees, Editing by Keith Weir, William Maclean)