Britain's FTSE falters as mining stocks lose ground

* FTSE 100 down 0.7 pct

* Miners impacted by Investec (LSE: INVP.L - news) downgrade on sector

* esure falls sharply after results miss consensus (Adds detail, quotes)

By Alistair Smout and Liisa Tuhkanen

LONDON, Aug 10 (Reuters) - Britain's top share index slipped lower on Monday, weighed down by a drop in major mining stocks which were impacted by a broker's downgrade on the sector after another batch of weak data from China.

The blue-chip FTSE 100 index fell 0.7 percent to 6,668.45 points in by 1105 GMT. The FTSE is up around 1.5 percent since the start of 2015 but is some 6 percent below an April record high of 7,122.74 points.

The market fell in thin trade, with Eikon data showing it was set to be the quietest day of the month at midsession.

Miners, which account for around a tenth of the FTSE 100 in terms of market capitalisation, dominated the index's list of worst-performing stocks, with Anglo American (LSE: AAL.L - news) falling 2 percent while BHP Billiton (NYSE: BBL - news) declined 1.8 percent.

Broker Investec downgraded several stocks in the sector and cut its commodity price forecast due to weakness in demand from China, the world's biggest metals consumer.

A survey showed a contraction in activity in China's factories, sending copper to a six-year low even as China's equity rallied on hopes of stimulus.

Jeremy Batstone-Carr, market analyst at Charles Stanley (LSE: CAY.L - news) , said that the weak data may result in China devaluing its currency.

"The commodity heavy UK market is taking a bit of a battering. The pressure is rising on China to devalue its currency ... which would support China's equity but not help metal prices or UK-listed miners," he said.

Shares (Berlin: DI6.BE - news) in Dixons Carphone (Stuttgart: CWB.SG - news) also fell 0.8 percent after the electrical goods and mobile phone retailer said the personal data of up to 2.4 million of its customers may have been exposed in a cyber attack.

Among mid caps, insurance company esure dropped 10.7 percent after its interim results marginally missed analysts' consensus forecast, hit by weakness in its motor insurance business.

"The company posted a massive 81 percent drop in trading profit from its motor insurance arm, decidedly offsetting a rise in premiums in other areas of the business," Augustin Eden, analyst at Accendo Markets, said in a note. (Editing by Digby Lidstone)