* FTSE 100 down 1.1 pct; banks toil on outlook, UK plans

* Oils down; crude falls on economic worries * Vodafone gains on Deutsche Telekom broadband deal

By David Brett

LONDON, July 8 (Reuters) - London's top share index ended down 1.1 percent on Wednesday, hitting its lowest closing level in more than two months, as weakness in banks, oil producers and miners offset minor resistance in some defensives.

The FTSE 100 .FTSE closed down 46.77 points at 4140.23, its third day of losses.

The index has gained 20 percent since hitting a six-year low in March, but is still down 6.6 percent for the year.

"We've been looking for direction from America, which we haven't really got ... not helped by the fall in the price of oil," said Mark Priest, senior equities trader at ETX Capital.

"The trend at the moment is definitely in the southerly direction, unfortunately. Despite IMF talk that the recession is on its way (out), people remain unconvinced."