Britain's FTSE dips as trade war fears loom, focus on May's Brexit speech

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* FTSE down 0.6 pct

* Focus on May's Brexit speech around 1330 GMT

* GKN eyes sale of auto unit

By Julien Ponthus

LONDON, March 2 (Reuters) - UK shares traded lower on Fridaymorning as concerns over U.S. protectionism fuelled by PresidentDonald Trump's promise to tax aluminium and steel imports sentjitters across stock markets worldwide.

At 0930 GMT, the FTSE was down 0.6 percent at 7,135 pointsas investors also waited for British Prime Minister Theresa Mayto lay out her vision for Brexit and address concerns both fromthe EU and her own conservative allies over the Irish border andtrade.

"It is to be hoped that the UK government will finally takeback the initiative," said Michael Hewson, an analyst at CMCMarkets, adding that expectations were, however, "fairly low".

Any reaction in sterling is likely to have an impact onBritish shares.

The pound's slow recovery since the June 2016 Brexit votehas given an accounting boost to UK blue chips with revenue indollars. A weak pound typically supports the FTSE while its riseusually puts a drag on the index.

London-listed steel producer Evraz was down 2.8 percent, asfears of rising U.S. protectionism and an escalating trade warwith Asia hit the share prices of European steelmakers aftersending their Asian peers down overnight.

Rentokil rebounded after falling during the previoussession on disappointing 2017 results. The British businessservices group led the FTSE with a 3.7 percent rise.

Shire shares were in second position, up 1.8 percent asspeculation over a possible offer for the biopharmaceuticalgroup had already boosted its shares on Thursday.

London Stock Exchange Group fell 3.2 percent afterreporting its 2017 results as traders noted higher costs.

Spire Healthcare Group, Britain's second-largesthealthcare firm, edged down 0.3 percent after reporting a 7.4percent drop in 2017 core earnings, hurt by weakness in itsbusiness linked to NHS online referrals, and announcing that itschief financial officer would step down.

British engineering company GKN was down 1.5percent. The British engineering group said it was in talks withDana Incorporated over its auto unit, opening up a newfront in its battle to fight off a hostile 7 billion pound ($9.6billion) bid from Melrose Industries.(Writing by Julien Ponthus; Editing by Kevin Liffey)