* FTSE 100 down 0.9 percent, hits 2-mth low
* Index breaks below 200-day moving average
* Vodafone biggest faller due to Europe writedown
By Toni Vorobyova
LONDON, Nov 13 Britain's blue chip share index
fell to a two-month low on Tuesday, breaking below a key
technical support level after heavyweight Vodafone
became the latest UK company to be hit by the euro zone crisis.
An unexpected fall in the closely watched German ZEW index
of analyst and investor confidence in November added to a more
cautious investor mood across Europe.
The FTSE 100 was 52.39 points, or 0.9 percent, lower
at 5,714.81 by 1116 GMT, breaking below the 200-day moving
average around 5,729.12 points and hitting its weakest intra-day
levels since early September.
"If you are looking at the macro news coming out, it's not
particularly positive," said Jordan Hiscott, trader at Gekko
"Vodafone have reported this morning with concerns over
southern Europe ... We've seen customers exiting long positions
in Vodafone in quite large size. They are now waiting on the
sidelines and I can't blame them."
Mobile phone operator Vodafone, the third-biggest company in
the FTSE 100, unveiled a 5.9 billion pound writedown on its
business in Spain and Italy and lowered its full-year outlook.
Its shares tumbled 4.5 percent, alone taking some 14.5
points off the benchmark UK index.
The update contained "lots of disappointment", analysts at
Liberum Capital said in a note, adding that earnings before tax,
depreciation and amortisation (EBITDA) forecasts could be cut by
around 2 percent.
"We recommend switching into BT. Shares are likely to
miss out if the market starts to recover from the recent
sell-off," they said.
In the current reporting season so far, 41 percent of UK
FTSE 350 companies have missed earnings forecasts, compared to
31 percent of U.S. S&P 500 companies, according to Thomson
Reuters Starmine data.
One bright spot on Tuesday was ITV, whose shares
surged nearly 9 percent after the broadcaster said its net
advertising revenue for the year will outperform the wider
($1 = 0.6302 British pounds)
(Editing by Susan Fenton)