* FTSE 100 index falls 0.7 percent
* Concerns about growth, Q3 earnings hit sentiment
* Growth-linked sectors suffer; banks, miners slide
* Technical factors suggest room for a bounceback
By Atul Prakash
LONDON, Oct 8 (Reuters) - Britain's top share index fell on Monday as concerns about the looming third quarter earnings season and the global economic outlook hurt growth-linked sectors like banking and mining.
Analysts said the FTSE 100
, down 0.7 percent at 5,828.88 by 1119 GMT. could fall 2-3 percent more in the near term, with sentiment dented by a cut in the World Bank's growth forecasts for the East Asia and Pacific region.
But a likely aid request from Spain and hoped-for clarity on U.S. spending cuts and tax rises could improve the mood, and technical factors suggested the market could thereafter bounce back.
The World Bank also said there was a risk the slowdown in the world's biggest metals consumer China could worsen, triggering a sharp sell-off in UK mining stocks
The mining index fell 1.4 percent.
"The World Bank's downgrade is another indication of the various concerns ... which are likely to be reflected in the earnings results," Mike Lenhoff, chief strategist at Brewin Dolphin, said.
The market was vulnerable to profit taking and could give up another 100-150 points before recovering, he said.
Analysts said earnings estimates had been cut over recent weeks, led by energy and materials firms and economically sensitive sectors such as financials.
The UK banking index was down 1.4 percent, pressured by Standard Chartered , Barclays and Royal Bank of Scotland , down 1.9 to 2.3 percent ahead of the results season that starts with U.S. aluminium firm Alcoa
According to Thomson Reuters data, earnings for the U.S. S&P 500
companies are forecast to have fallen 2.4 percent from a year earlier, the first drop in three years. The earnings season in Europe will pick up in the second half of October.
, which makes products for the global steel industry, and recruiter Michael Page
on Monday became the latest UK firms to issue profit warnings. Cookson fell 13.7 percent while Michael Page shed 1.3 percent.
fell 1 percent after its largest shareholder issued a long list of objections to the group's proposed $45 billion merger with EADS
. 'UPTREND INTACT'
Charts showed that the FTSE 100 index's medium-term outlook remained good. The index is up 4.6 percent so far this year and has advanced more than 11 percent since hitting a low in June.
"I remain relatively positive as the four-and-a-half-month uptrend is still intact," Dominic Hawker, technical analyst at Westhouse Securities, said.
He said that it was encouraging that the index still traded above its uptrend line, now at around 5,750 and which could prove to offer strong support. The index faced a tough resistance at around 6,000 points, its 2012 high.
Analysts said UK equities had become expensive following recent price moves, but were still relatively attractive.
According to Thomson Reuters Datastream, the FTSE 100 index traded at 10.7 times its one-year forward earnings, up from 6.6 times in October 2008 but below its 10-year average of 11.5.
"Stocks are not dirt cheap, but valuations are still OK and wouldn't be an issue when it comes to investing," Lenhoff said.
(Editing by John Stonestreet)
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