FTSE falls on French growth and Spanish rating cuts

London's FTSE 100 slipped into the red in early trading this morning after Fitch Ratings cut Spain's long-term credit rating and predicted a slump through 2013.

Fitch cut Spain's sovereign debt rating from ‘A' to ‘BBB,' the lowest investment grade rating, citing the cost of recapitalizing the country's banking industry and a lengthening recession. The FTSE was down 1% at 5,392, led by miners as metal prices retreated on the news, before recovering to stand down 0.5% at 5,421 by mid-morning. The French central bank also hit sentiment as it cut its second-quarter growth estimate. The Bank of France now expects the economy to contract by 0.1% in Q2, having previously expected growth to be unchanged. If the figures are confirmed it would be th...