Miners plunge on Australia growth cut; FTSE down

Miners dragged the FTSE 100 down this morning after Australia cut its economic growth forecast, with investors also nervous ahead of key US jobs data.

The Reserve Bank of Australia, which cut its main interest rate earlier this week, warned the country's GDP will only expand by 3% in 2012, lower than its earlier forecast of 3.5% in February. Consumer prices are expected to increase by 2.5% down from 3%. The warning on growth spooked investors who sent the FTSE 100 down 1% or 54 points, to 5,712. Miners Antofagasta, ENRC, Rio Tinto, Xstrata and Anglo American were among the worst performers on the FTSE, with the stocks down as much as 5%. Elections across Europe in France, Greece, Italy and Germany this weekend also caused investo...