(Corrects FTSE support level in final paragraph to 5,510 from 5,5110)
* FTSE 100 down 1 percent
* Banks, commodity stocks weak
* Falls across the board, close to technical support level
By Simon Falush
LONDON, Sept 28 (Reuters) - Weaker banks and commodity stocks pushed Britain's top share index lower early on Tuesday as confidence in the global economic recovery ebbed slightly and concerns about Europe's debt situation prompted equity sales.
By 0853 GMT, the FTSE 100 was 56.74 points, or 1 percent, lower at 5,5516.68, after it fell 0.5 percent on Monday.
Worries over the debt situation in peripheral euro zone countries led investors to reevaluate the level of their equity holdings, prompting them to sell those stocks most dependent on strong economic recovery.
S&P said Ireland's cost of Anglo Irish bank recapitalisation could exceed 35 billion euros ($46.70 billion) and trigger further rating downgrades.
Falls from risk sensitive banks contributed to around 12 points lost from the index. Standard Chartered lost 2.1 percent while HSBC fell 0.9 percent.
"The jury's still out (on the prospects for global economic recovery), so that's what's making the moves more exaggerated than they would usually be," said David Jones, chief market strategist at IG Index.
Elsewhere among financials hedge fund firm Man Group was a heavy loser, down 3.4 percent, the top blue-chip faller, after it said clients had pulled out assets for an eighth straight quarter.
MINER LOSSES
Miners were the other big drag on the index, weighed by softer metal prices.
Xstrata and Antofagasta fell around 1.5 percent but Vedanta Resources fell 1.4 percent after Deutsche Bank downgraded it to "hold" from "buy".
Energy stocks were also weighed by weaker commodity prices, with crude down over 1 percent. BP and Royal Dutch Shell lost 1.4 and 1.1 percent respectively.
Macro-economic data painted a slightly brighter picture. Britain's economy grew at its fastest pace in nine years in the second quarter of 2010 and first quarter growth was revised slightly higher, the Office for National Statistics said on Tuesday.
Separate data showed Britain's current account deficit narrowed to 2.0 percent of gross domestic product (GDP) in the second quarter from 3.1 percent in the first three months of the year.
September's CBI distributive trades report is due at 1000 GMT.
Across the Atlantic, September U.S. consumer confidence data, due at 1400 GMT, should be the main interest for investors this afternoon.
Losses were widespread, with TUI Travel off 1.8 percent after an update from midcap rival Thomas Cook in which it said it was looking to cut costs and streamline its operations amid continuing uncertainty over economic conditions.
Thomas Cook fell 4.7 percent.
From a technical perspective, the index is just above support at the 5,510 level, with the next significant support around 5,435, Michael Hewson, technical analyst at CMC Markets said. (Editing by Sharon Lindores) ($1=.7494 Euro)