FTSE posts worst weekly fall in 6 yrs on growth woe

* FTSE 100 slides 2.3 pct for biggest weekly fall in 6 yrs * Weak copper, crude prices weigh on commodity stocks * Banks weak on global growth fears * RSA Insurance rises on talk of bid interest

By Dominic Lau

LONDON, Sept 5 (Reuters) - Britain's top share index ended down 2.3 percent on Friday, registering its biggest weekly fall in six years, as banks and commodity stocks fell on global economic worries after the U.S. jobless rate jumped last month.

Vodafone (VOD.L: Quote, Profile, Research, Stock Buzz) was the top-weighted loser, down 4.5 percent after top mobile phone maker Nokia (NOK1V.HE: Quote, Profile, Research, Stock Buzz) warned the soft global economy, tough competition and a weak handset portfolio would hit its market share in the third quarter. Nokia shares tumbled nearly 10 percent.

The FTSE 100 .FTSE ended down 121.4 points at 5,240.7 for a weekly loss of 7 percent -- the biggest such fall since July 2002. The UK benchmark is down nearly 19 percent so far this year.

"It's surprising how things can change in a few days. Earlier in the week there was talk of the inflation threat receding with crude oil prices falling. Markets were looking a little bit rosy. We were thinking there might be a rally towards the end of the year," said Tim Whitehead, head of portfolio services at Redmayne-Bentley.

"Now things have turned on their heads ... We are in a bear market and these are the bear rallies that we should expect. The best we can hope is for the market to continue to trade in a range between 5,200 and 5,600 which it has been doing in the last few months."

European shares also finished the day sharply lower, while U.S. stocks were down.

Banks were among the standout losers on the FTSE 100, with comments from European Central Bank President Jean-Claude Trichet on Thursday adding to fears about the ability of the financial sector to weather the slowdown.

HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz), Barclays (BARC.L: Quote, Profile, Research, Stock Buzz), Royal Bank of Scotland (RBS.L: Quote, Profile, Research, Stock Buzz), HBOS (HBOS.L: Quote, Profile, Research, Stock Buzz), Lloyds TSB (LLOY.L: Quote, Profile, Research, Stock Buzz) and Standard Chartered shed between 1.2 and 3.6 percent.

The U.S. unemployment rate unexpectedly jumped to 6.1 percent in August, the highest in nearly five years, as employers cut payrolls for an eighth straight month and a decline in labour markets accelerated. [ID:nN05415312]

RSA Insurance (RSA.L: Quote, Profile, Research, Stock Buzz) was a rare bright spot in the financial sector, rising 2.8 percent as traders cited bid interest from Allianz (ALVG.DE: Quote, Profile, Research, Stock Buzz). Both Allianz and RSA declined to comment.

MINERS FALL, OILS SUPPORT

Mining stocks took a hit from falling copper prices <MCU3=LX>, with Rio Tinto (RIO.L: Quote, Profile, Research, Stock Buzz), BHP Billiton (BLT.L: Quote, Profile, Research, Stock Buzz), Anglo American (AAL.L: Quote, Profile, Research, Stock Buzz), Xstrata (XTA.L: Quote, Profile, Research, Stock Buzz) and Eurasian Natural Resources (ENRC.L: Quote, Profile, Research, Stock Buzz) shedding 3.2 to 7.6 percent.

Ukrainian iron ore miner Ferrexpo (FXPO.L: Quote, Profile, Research, Stock Buzz) slumped 7.1 percent as investors worried about the growing political tensions in Ukraine.