FTSE slides 1.1 pct, HSBC bucks trend on results

By Rebekah Curtis

LONDON, March 3 (Reuters) - Britain's leading share index slid 1.1 percent on Monday, dragged by banks and oil stocks as investors feared a U.S. recession was nigh, but global bank HSBC (HSBA.L: Quote, Profile, Research) bucked the trend on its results and a higher dividend.

HSBC led the FTSE 100 .FTSE gainers, rising 3.1 percent after saying its profit rose 10 percent last year, as strong gains in Asia helped it absorb a $17.2 billion hit for bad debts due to U.S. housing market problems. [ID:nL03104887]

Its full-year dividend rose by 11 percent.

The FTSE 100 ended down 65.7 points at 5,818.6, sealing a four-day losing run as European shares also fell sharply.

The UK benchmark index lost nearly 9 percent in the first two months of the year as credit-related writedowns by financial firms and a slew of weak economic data stoked U.S. recession fears.

U.S. stocks, which tumbled on Friday because another round of weak economic data added to those recession worries, trimmed losses on Monday after data showed U.S. factory activity in February contracted slightly less than economists had expected.

"It's just a conveyer belt of negative news at the moment," said Richard Hunter, head of UK equities at brokerage Hargreaves Lansdown.

"Less than convincing economic indicators from both sides of the pond keep coming through."