FTSE edges lower, pulled down by Rolls-Royce, mining shares

* Blue-chip FTSE 100 index down 0.2 percent

* Rolls-Royce falls further on broker downgrades

* Miners under pressure, track metals prices

By Atul Prakash

LONDON, July 7 (Reuters) - Britain's top share index edged lower on Tuesday, with Rolls-Royce falling again after Monday's profit downgrade and mining shares tracking a decline in metals prices.

Rolls-Royce fell 3 percent, extending a 6.3 percent loss on Monday, as Natixis (Paris: FR0000120685 - news) , Investec (LSE: INVP.L - news) , Bernstein and RBC (Other OTC: RBCI - news) cut their target prices for the stock.

The UK mining index slipped 0.8 percent after copper prices fell to a five-month low, amid concern about economic growth in China, the world's top metals consumer.

"While Greece remains in focus, the volatility in Chinese stock markets has continued, impacting on commodity prices and related sectors such as the miners," said Keith Bowman, equity analyst at Hargreaves Lansdown (LSE: HL.L - news) .

The FTSE 100 index was down 0.2 percent at 6,523.55 points by 0810 GMT. It fell 0.8 percent in the previous session after Greek voters rejected conditions for more financial aid.

"The FTSE is treading water as the ongoing concerns in Greece continue to dominate the financial markets," Securequity trader Jawaid Afsar said.

An emergency euro zone summit on Tuesday will hear new proposals from Greek Prime Minister Alexis Tsipras on a further bailout. Without more aid, Greece may become the first state to leave the euro since the single currency was introduced in 1999.

"As a Greek exit from the currency union seems the majority view of the investment community, the focus will firmly be on the euro zone summit later in the day," Afsar said.

Shares (Berlin: DI6.BE - news) in property developer Land Securities (LSE: LAND.L - news) dropped more than 1 percent after UBS (NYSEArca: FBGX - news) raised its stance on the stock to "buy" from "neutral".

Chipmaker ARM Holdings rose 2.8 percent, the biggest gain in the FTSE 100 index, after Morgan Stanley (Xetra: 885836 - news) raised its stance on the stock to "overweight" from "equal weight" and added the company to its "best ideas list". (Reporting by Atul Prakash, editing by Larry King)