FTSE 100 hit by global risk aversion; BP a bright spot

(Reuters) - UK's FTSE 100 slipped on Tuesday, as a bout of risk aversion hit global markets on renewed U.S.-China tensions, although shares of BP rose after the oil major posted upbeat results and announced a hike in its dividend.

The blue-chip FTSE 100 slipped 0.3% by 0709 GMT, echoing the mood in global equities ahead of a potential visit by U.S. House of Representatives Speaker Nancy Pelosi to Taiwan amid warnings from China.

Helping limit losses in the index, BP climbed 3.3% after its second-quarter profit soared to a 14-year high of $8.45 billion as strong refining margins and oil trading helped it boost its dividend and share repurchases.

HSBC slipped 1.9% after strong earnings drove a 6.1% gain in the previous session. Exande BNP Paribas on Tuesday downgraded the stock to "neutral" from "outperform."

The domestically focussed FTSE 250 midcap index dropped 0.6% as shares of Man Group slid 5.6% after the fund manager flagged potential volatility in the near term.

Travis Perkins, Britain's biggest seller of building materials, fell 7.5% after downbeat first-half results.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Sherry Jacob-Phillips)