FTSE slides as growth concerns thump commodities

* FTSE 100 falls 1.3 percent

* Weaker commodity prices dent miners, energy stocks

* Technical indicators point to further weakness

By Simon Falush

LONDON, May 12 (Reuters) - A rout in commodity prices triggered by a gloomy view of global economic growth pummelled mining and energy stocks on Thursday, which led a broad-based fall in Britain's top share index.

Oil fell to below $111 per barrel , after dropping more than 5 percent on Wednesday. Base and precious metals also slid and equities followed suit as worries about the global growth outlook intensified. [ID:nLDE68E0P8]

"Growth indicators have been disappointing, it looks like there will be tighter monetary policy and QE 2 (a second round of quantitative easing) is coming off which has led to a rotation into defensive stocks from more cyclical stocks," Ronan Carr, European analyst at Morgan Stanley said.

By 1127 GMT the FTSE 100 was down 75.63 points or 1.3 percent at 5,900.37 after it fell 0.7 percent to close at 5,976.00 on Wednesday.

The index is down 2.8 percent in May, its sharpest monthly fall since last July.

Silver miner Fresnillo was the top faller, off 5.2 percent, hurt by a sharply lower silver price

Energy stocks were down, reflecting the sharp falls in crude overnight. BP fell 1 percent.

But the fall in oil prices supported airlines. International Consolidated Airlines Group added 1 percent.

Emphasising the tough times ahead for the domestic economy, British industrial output rose much less than expected in March, which hurt sterling

3I group was the standout gainer, jumping 5.8 percent after private the equity firm said asset value rose some 6 percent in the six months to 351 pence.

DEFENSIVES OUTPERFORM

AstraZeneca was also a strong performer, as UBS lifted its rating on the drug maker to "buy" ahead of a ruling on its heart drug Brilinta by U.S. health regulators.

Other defensive stocks such as utilities were also buoyant and analysts said their outperformance would be likely to last.

"In the recent bond market rally defensives have outperformed," Shore Capital said in a note.

"We suggest that this is likely to continue in the next few months as we expect economic data to continue to indicate slightly lower rates of growth than enjoyed in the 2010, as a result of higher oil prices and monetary tightening especially in the US."

ICAP was a heavy faller, off 4.8 percent, after its rival Tullett Prebon <.FTMC> reported shrinking revenue growth. Tullett Prebon fell 6 percent.

Technical indicators also painted a fairly bleak picture.

The index had dropped below a 23.6 percent Fibonacci retracement of its November low to the April high and below its 50-day moving average. Recent price action suggests support levels will be tested, analysts said.

"Even though the move through last week's low at 5871.57 failed to trigger an acceleration to the downside, it did weaken support, suggesting that traders will eventually pressure the market through this price level," said Enis Mehmet, analyst at Autochartist.

"Based on the short-term range of 5509.00 to 6103.73, expectations are for the market to eventually test the retracement zone of this range at 5806.36 to 5736.19." (Additional reporting by Tricia Wright. Editing by Jane Merriman)