* FTSE 100 down 0.6 percent
* Retailers knocked after snow hit Christmas sales
* Miners track metals prices lower; dollar weighs
* ARM Holdings up as M&A speculation supports
By Tricia Wright
LONDON, Jan 5 (Reuters) - Britain's top share index fell on Wednesday as concerns on the high street pressured retailers, and mining stocks followed metals prices lower.
By 1209 GMT, the FTSE 100 was off 36.79 points, or 0.6 percent, at 5,977.08. The index kicked off 2011 with a 31-month closing high on Tuesday, up 1.9 percent as it played catch-up with gains in Europe and the United States on Monday when the London market was shut for a holiday.
Retailers were out of favour as figures from Next and HMV showed a fall in sales in the run-up to Christmas after snow and sub-zero temperatures deterred shoppers, increasing anxiety about the sector in 2011.
Fashion chain Next said sales at shops open at least a year fell 6.1 percent in the 21 weeks to Dec. 24. Its shares rose 1.6 percent as the fall was broadly in line with expectations.
Music and games retailer HMV slumped 21 percent after it said full-year profit would be at the lower end of expectations.
High-street stalwart Marks & Spencer slid 1.5 percent, while home improvements retailer Kingfisher lost 2.2 percent.
SENTIMENT UPBEAT
While the market was lower on Wednesday, many participants saw the broad upward trend as being intact.
"Everyone I speak to seems to be bullish on the market. Why? Because when inflation kicks off, that is usually good for the stock market, and obviously you have got expectations of increased mergers and acquisitions," Phil Gillett, a trader at Spreadex, said.
Miners were hit as copper fell from a record in the prior session, weighed down by a firm dollar, with Anglo American and Antofagasta the worst off, shedding 2.9 percent and 2.8 percent respectively.
It was a similar story with energy stocks, knocked as oil fell further from 27-month highs on the stronger dollar.
Royal Dutch Shell lost 1.9 percent while BG Group eased 0.4 percent.
On the upside, technology company ARM Holdings topped the blue-chip leader board, adding 2.8 percent, boosted by a high-profile trade fair in the United States and bid talk in the sector.
Mid-cap peer CSR jumped 6.2 percent, with Seymour Pierce saying M&A could lead the market to refocus on the discount that CSR trades at to some of its peers.
U.S. stock index futures pointed to a lower opening on Wall Street, as investors waited for the ADP National employment survey and the Challenger Layoffs numbers for December, due at 1230 GMT and 1315 GMT respectively, ahead of Friday's key U.S. December jobs report.
The December U.S. ISM non-manufacturing index will also be released on Wednesday, at 1500 GMT. (Editing by Dan Lalor)