* FTSE 100 down 0.6 pct
* Telecoms weak as C&W Worldwide says hit by spending cuts
* Miners supported by firmer metal prices
* Banks lower; await Goldman Sachs earnings
By Simon Falush
LONDON, July 20 (Reuters) - Worries about European debt
slowing growth and pessimism on corporate earnings pushed
Britain's top share index lower by midday on Tuesday, with banks
weighing ahead of U.S. peer results.
Telecoms stocks were also down after Cable & Wireless
Worldwide <CWP.L> said it would be hit by government cuts.
By 1104 GMT, the FTSE 100 <> was 28.45 points lower at
5,119.83, having fallen 0.2 percent on Monday.
The blue chip index is down for a fifth consecutive session,
though it is still up 4.1 percent this month, recovering after a
13 percent fall last quarter.
Nagging concern on Europe's debt situation bubbled to the
surface once again after Hungary sold less of its debt than
expected. []
Investors were also nervous ahead of a big batch of U.S.
earnings due on Tuesday with Goldman Sachs <GS.N> and Bank of
New York Mellon Corp <BK.N> reporting ahead of the Wall Street
open, while tech giants Apple <AAPL.O> and Yahoo <YHOO.L> will
report after the New York closing bell.
British banks, which have been in sharp retreat for several
sessions, were lower ahead of the fresh earnings news from their
U.S. peers. Barclays <BARC.L> fell 2.7 percent, while Lloyds
Banking Group <LLOY.L> lost 1.3 percent.
"It is so sentiment bound at the moment we'll have to get
good numbers (from U.S. companies) to break out of the ranges,
and the government debt worries, and stress tests (due out on
Friday) are acting as a drag," said James Hughes, market
strategist at CMC Markets.
He said the FTSE 100 200-day moving average of 5,320 is
acting as a stiff resistance point while there is support at
4,980.
CUTS HURT
Cable & Wireless Worldwide <CWP.L> was the top blue chip
faller, down 17 percent after it warned that trading had been
hit by a significant slowdown in the UK public sector following
the government's emergency budget in June.
This warning prompted a 4.2 percent fall in peer BT Group
<BT.L> on fears that it too would be hit by the cuts in
government spending.
Mobile telephone operator Vodafone <VOD.L> was also in
retreat, down 1.4 percent after ING cut its rating for the firm
to "hold" from "buy" in a sector review, citing valuation
grounds.
Miners were the main support to the index, supported by
firmer metal prices. Xstrata <XTA.L> and Rio Tinto <RIO.L> both
gained 1.1 percent.
High-end fashion group Burberry <BRBY.L> was also a strong
performer, up 1.1 percent after Investec reinstated its coverage
on the company with a "buy" rating. []
A key index of British factory orders rose to its highest in
almost two years in July, but export orders appeared to weaken,
the CBI's industrial trends survey showed on Tuesday.
[]
Britain's public sector net cash requirement rose
unexpectedly to its highest level since records began in April
1984, official data showed on Tuesday.
The Office for National Statistics said on Tuesday the
public sector posted a net cash requirement of 20.905 billion
pounds ($31.75 billion), up from 20.213 billion pounds in June
last year and well above economists' forecasts for a fall to 15
billion pounds.
(Editing by Sharon Lindores)
($1=.6583 Pound)
