UK stocks slip as investors gauge prospects of U.S. rate hike

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window) * Miners biggest weight on FTSE 100 * Rio slides on trading ex-dividend * Aviva jumps after profit rise, buybackFTSE 100 down 0.5%, FTSE 250 off 0.6% (Adds comments, details) By Susan Mathew March 9 (Reuters) - London's FTSE 100 fell on Thursday as investors braced for a likely faster and longer period of interest rate hikes from the U.S. Federal Reserve, with miners leading declines as metal prices dropped in the wake of a stronger dollar.

London's FTSE 100 fell on Thursday as investors braced for a likely faster and longer period of interest rate hikes from the U.S. Federal Reserve, with miners leading declines as metal prices dropped in the wake of a stronger dollar. The blue-chip FTSE 100 index fell 0.6%, and the mid-cap index lost 0.7%, extending losses for a third straight session.

Overnight, Fed Chair Jerome Powell reiterated that the central bank was prepared to hike interest rates and potentially faster, should U.S. jobs and inflation data warrant, which is typically negative for risk assets. Strengthening the case for hikes, data showed

U.S. job openings fell less than expected in January.

It is basically uncertainty about the path for U.S. rates that have led to a decline in stocks, said Giles Coghlan, chief market analyst at HYCM. "All eyes are now going to be firmly on (U.S) non-farm payroll (NFP) print on Friday... but the ADP jobs yesterday showed a beat... (and while) ADP doesn't necessarily do a good job in projecting NFP numbers, it does set the mood."

The FTSE 100 is up more than 6% so far this year, but is off more than 2% from all-time highs hit last month as investors try to assess the impact of rising interest. While forecasts show the UK economy could avoid a recession, entrenched inflation and a hawkish Powell have forced

traders to price in a more than 50% chance that Bank of England rates will reach 5% later this year from 4% currently.

Among individual stocks, Rio Tinto dropped 0.6% as the miner traded without dividend eligibility. Falling iron ore and base metal prices weighed on the broader sector. Shares of Aviva rose 3.5% after and announcing a 300 million pounds ($355.53 million) buyback following a 35% jump in operating profit.