* FTSEurofirst 300 falls 1.2 pct, Greek shares sink 10.2 pct
* Tesco slumps after another profit warning
* Energy stocks track weaker crude oil prices (Recasts, adds quote)
By Alistair Smout
LONDON, Dec 9 (Reuters) - European shares fell to a two-week low on Tuesday, led down by a slump in Greek stocks after an unexpected decision to bring forward the country’s presidential election in which the anti-bailout Syriza party is well placed to do well.
The FTSEurofirst 300 index of top European shares was down 2 percent at 1,367.45 points by 1435 GMT, hitting its lowest since late November and set for its biggest fall since mid October.
Greek stocks sank 11.3 percent, set for their biggest single-session fall since November 1987, the Athens Stock Exchange said.
The government said on Monday it would bring forward a presidential vote by two months in a political gamble that heightened uncertainty over the country’s transition out of its bailout.
Greek banks fell sharply, with National Bank of Greece down 17.6 percent and Alpha Bank dropping 12.8 percent.
Other countries on the periphery of the euro zone also saw stocks fall, with Spain’s IBEX and Italy’s FTSE MIB down 2.7 percent and 2.5 percent respectively.
“Compared to the height of the euro zone crisis, the political uncertainty is being limited to Athens at the moment, but that could change if the left-wing party win later in the month,” Brenda Kelly, chief market strategist at IG, said, referring to Syriza.
The party, which has vowed to end cooperation with lenders and reverse austerity measures, is leading in opinion polls.
Across Europe, Britain’s FTSE 100 fell 1.8 percent, Germany’s DAX was down 1.8 percent and France’s CAC dropped 2.1 percent.
The STOXX Europe 600 Oil and Gas index dropped 2.4 percent after Brent oil slipped to a five-year low below $66 on prospects of a swelling supply glut, a trend that has short-term benefits but could also feed into concerns of deflation.
“A temporary fall in the price of oil is good for the broader economy. However, if the oil price is still down here in a month’s time, then that would put sustained pressure on the market,” Zeg Choudhry, managing director of LONTRAD, said.
Shares in British grocer Tesco plunged after another profit warning, down 7.7 percent after hitting their lowest in nearly 15 years.
Tesco slashed its full-year outlook by almost a third in the latest downgrade, triggered by an accounting scandal and intense competition in its home market. The European retail index fell 2 percent.
“This is clearly something that will weigh on their profits for the time being, but I do sense that a lot of the bad news is now baked in,” IG’s Kelly said. (Editing by David Holmes)