Britain's FTSE falls as mining shares drop, though TUI gains

(ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report for more details)

* FTSE 100 down 0.7 pct

* Mining shares fall, tracking metals prices

* TUI (LSE: 0NLA.L - news) jumps as bookings rise

* AO World (Other OTC: AOWDF - news) soars on results beat

By Kit Rees

LONDON, March 31 (Reuters) - UK shares retreated on Thursday as mining stocks were hit by a drop in metals prices, although investors cheered a rise in summer bookings for tour operator TUI Group.

A fall in copper prices to a four-week low weighed on mining companies. Concern over slowing demand in China, the world's top consumer of metals, came into focus before the release of a manufacturing Purchasing Managers' Index on Friday.

BHP Billiton (NYSE: BBL - news) , Glencore (Xetra: A1JAGV - news) , Rio Tinto (LSE: RIO.L - news) , Anglo American (LSE: AAL.L - news) , and Antofagasta (Other OTC: ANFGF - news) fell 1.2 to 3.3 percent.

"The recent rebound in metal and oil looks to be running out of steam with the recent rally looking more like a dead cat bounce," said Manoj Ladwa, head of trading at TJM Partners.

The FTSE 100 index was down 0.7 percent at 6,158.40 points by 0812 GMT, slightly outperforming the broader European market.

Life insurance company Old Mutual (Other OTC: ODMTY - news) , InterContinental Hotels Group and Wolseley (LSE: WOS.L - news) fell 1.2 to 3.4 percent after going ex-dividend, taking around 2.3 points off the FTSE 100 index.

However, a rise in summer bookings for tour operator TUI Group sent its shares up over 6 percent, after the company said it was on track to meet its annual target.

Shares (Berlin: DI6.BE - news) in cruise company Carnival (LSE: CCL.L - news) also gained 1.4 percent, and the UK travel and leisure sector advanced 0.4 percent to a two-and-a-half week high earlier in the session.

"(TUI Group) has been hit hard by the deteriorating situation in many key destinations like Turkey, Egypt and North Africa, but a bullish trading outlook this morning - and arguably the fact that the shares had been sold down a little too aggressively - has served to leave the stock trading ... higher," Tony Cross, market analyst at Trustnet Direct, said in note.

Among mid-caps, online retailer AO World jumped 7.4 percent after it said that gaining market share helped boost UK revenue and EBITDA ahead of its target. ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.

If you have any thoughts, suggestions or feedback on this, please email mike.dolan@thomsonreuters.com.

Mike Dolan, Markets Editor EMEA. (Reporting by Kit Rees, editing by Larry King)