FTSE falls after US growth downgrade

The FTSE 100 fell alongside other major markets across Europe today, after the Federal Reserve cut its growth forecast for the US economy.

Investors were spooked by a sharp downgrade of the US, where growth is now forecast to come in at a maximum of 2.4% this year, down from a previous estimate of 2.9% made in April. In reaction markets moved lower, with the FTSE 100 down 0.5% or 25 points by mid-morning, at 5,596. Other markets across Europe were also lower as investors fretted over the strength of the US recovery. Both the German Dax and French Cac were lower, off 0.5% and 0.4% respectively, trading at 6,360 and 3,113. However, markets could well pick up if there is more stimulus from the Fed. Last night it op...