(Refiles to change push to pushing in first paragraph)
* FTSE 100 index drops 0.5 percent
* Banks, miners weak after recent strength
* Bank of England keeps interest rates unchanged
By Simon Falush
LONDON, Feb 10 (Reuters) - Disappointing corporate results crimped confidence on the outlook for risk-sensitive banks and miners, pushing Britain's top share index lower by the close on Thursday.
Diageo shed 4.6 percent as half-year results from the world's biggest spirits group missed forecasts, prompting broker Espirito Santo to downgrade its rating to "hold".
International Consolidated Airline Group was also sharply lower, off 3.3 percent as peer Air France-KLM slid after warning it would miss a key profit target after being hit by a triple whammy of snow, strikes and security problems.
The FTSE 100 ended down 32.28 points, or 0.5 percent, at 6020.01, extending Wednesday's retreat after hitting its best closing level since May 2008 on Tuesday.
The index is still up 2 percent in 2011 after a 9 percent rise last year, and many analysts remain fairly upbeat about prospects for equities.
"There's a bit of nervousness around now, but there are always going to be a couple of disappointments, but overall earnings have gone reasonably well, and there's no reason for the market to be depressed for a long period of time," said Peter Dixon, economist at Commerzbank.
RATES ON HOLD
There was little reaction to the expected decision by the Bank of England to leave interest rates unchanged following its latest monetary policy committee meeting.
Banks were the worst blue-chip performers, with HSBC down 1.1 percent, hit by a profits disappointment from Swiss peer Credit Suisse.
Renewed sovereign debt concerns also weighed on the lenders as Portugal's government bond spreads widened.
Insurers retreated, too, with Prudential down 1.9 percent, reversing gains made on Wednesday after a broker upgrade.
Miners extended Wednesday's declines, reflecting weaker metals prices after China raised interest rates earlier in the week.
Rio Tinto shed 2.4 percent despite announcing a doubling in its dividend payout and promising to return $5 billion to shareholders by 2012.
Energy stocks recovered from lows as media reported that Egypt's embattled president of 30 years might step down, helping to push crude higher. BP edged up 0.1 percent.
On the upside, Smith & Nephew, Europe's largest artificial knees and hips maker, rose 2.1 percent after it posted a 9 percent rise in fourth-quarter trading profit.
"Good numbers slightly ahead of expectations and a resolution on accounting issues," said Atif Latif, director of trading for Guardian Stockbrokers.
Advertising group WPP climbed 1.5 percent to a nearly nine-year high, with traders citing a positive read-across from the results of French rival Publicis.
And enterprise search software maker Autonomy rose 2.2 percent as UBS upgraded the stock to "buy" from "neutral".
On the economic data front, British manufacturing output unexpectedly fell in December, but a surge in energy production due to the cold weather meant that overall industrial output rose as expected, official figures showed. (Reporting by Simon Falush; Editing by Will Waterman)