* UK economy grows faster than expected in June
* Aviva jumps on results, shareholder return plan
* Cineworld top mid-cap gainer on U.S. listing plans
* FTSE 100 down 0.4%, FTSE 250 flat
(Updates to market close)
By Shashank Nayar and Ambar Warrick
Aug 12 (Reuters) - London's FTSE 100 closed lower on
Thursday with Rio Tinto weighing the most as it traded
ex-dividend, while insurer Aviva topped the blue-chip index on
strong first-half earnings.
The FTSE 100 fell 0.4% with Rio Tinto
slipping 5.5% as it traded ex-dividend, after logging record
half-year earnings last month.
Oil majors BP and Royal Dutch Shell were
also among the top drags on the FTSE after the International
Energy Agency said the spread of the Delta variant of the
coronavirus would slow the recovery of global oil demand.
Insurer Aviva rose 3.5% and was the top gainer on the
FTSE 100 after it reported a 17% rise in first-half operating
profit and said it would return at least 4 billion pounds ($5.55
billion) to shareholders.
The domestically focused mid-cap index was flat.
Cineworld was the best performer on the index after
outlining plans for a U.S. listing.
Despite a volley of strong second-quarter earnings, the FTSE
100 has lagged its developed world in recent months due to
having lower exposure to technology stocks, which tend to be
more resilient to virus-related disruptions.
But the midcap index, which is trading near record highs,
has benefited from optimism over an economic recovery in
Britain.
Britain's economy grew by a faster-than expected 1.0% in
June, boosted by the huge services sector, against a Reuters
poll of economists that pointed to a monthly growth of
0.8%.
"While the headline UK GDP numbers show growth, we are still
a long way from pre-pandemic levels with only government
spending rising at good levels. But that cannot be said for the
level of consumer spending, which is affecting investor
sentiment to some extent," said Stefan Koopman, a senior market
economist at Rabobank.
Stock Spirits surged 43.7% after the spirit maker
agreed to a takeover by funds affiliated to private equity firm
CVC in a deal valuing it at 767 million pounds ($1.1
billion).
(Reporting by Shashank Nayar in Bengaluru; Editing by
Subhranshu Sahu and Angus MacSwan)
