FTSE edges down, stuck in narrow range

* FTSE 100 down 0.1 pct, expected to stay in narrow range

* Banks fall; miners rise

* Aegis surges on talks about sale of unit

By Brian Gorman

LONDON, June 6 (Reuters) - Britain's top share index edged down slightly in thin volumes on Monday, following Wall Street's fall after U.S. labour data suggested the recovery in the world's biggest economy was running out of steam.

Analysts said the index was set to continue to trade in a narrow range for some time, as strong corporate earnings offset the bleaker macroeconomic picture.

".. I think we're going to be pretty rangebound for the rest of the summer, stuck between 5,800 and 6,000 for the foreseeable future," said Rupert Armitage, director at Shore Capital.

At 1110 GMT, the FTSE 100 <.FTSE> was down 4.56 points or 0.1 percent at 5,850.81 points, with volume at 27.7 percent of the 90-day average.

Wall Street closed out a fifth week of losses with more selling on Friday after the anaemic jobs data.

The FTSE 100 index fell 1.4 percent last week, but is still up more than 4 percent from the 2011 low it hit in mid-March. Banks fell on Monday, with partially state-owned Lloyds Banking Group , down 2.5 percent, hitting its lowest in more than a year.

The government has a 41 percent stake in Lloyds after it bailed the bank out with billions of pounds of taxpayers' money during the financial crisis.

Investment banks are finalising sale documents that will start the bidding process for 4.4 billion pounds ($7.2 billion) worth of assets at Lloyds and Northern Rock, the Sunday Telegraph said. [ID:nLDE7540DC]

"Some of the banks that rallied into the close on Friday have given back gains," said Colin McLean, managing director at SVM in Edinburgh", which has 650 million pounds under management. "Brokers have been cutting price targets on Lloyds And there are still worries in the sector about funding problems, balance sheets and stress tests, and what the European periphery is going to do."

He added: "Markets are still more risk-averse, still more inclined towards defensives like pharmaceuticals.

Some energy producers fell, as Brent crude slipped toward $115 a barrel on Monday on concern about demand ahead of a key OPEC meeting later this week. Index heavyweight BP fell 0.6 percent.

Miners helped to limit the FTSE's losses, with the price of copper and other metals rising, boosted by a weak dollar, on expectations the Federal Reserve will continue to supply liquidity to the market.

Anglo American , Kazakhmys and Rio Tinto rose between 0.6 and 1 percent.

GLENCORE RISES

Commodities trader Glencore rose 2.5 percent, after Deutsche Bank initiated coverage of the stock with a "buy" rating. The broker said the company's growing producing base and successful trading business made Glencore different to the diversified miners with which it is often compared.

But mid-cap precious metals group Hochschild fell 8 percent on worries about the election victory of a left-wing former army commander in Peru, where much of the company's earnings are concentrated. [ID:nN06237167]

Among other mid-caps, Aegis surged 7 percent after the marketing company said it was in talks to sell its market research unit Synovate to French group Ipsos . [ID:nLDE755066]

(Editing by Erica Billingham)