FTSE falls as investors take fright at French downgrade

UK markets have fallen this morning following the surprise announcement yesterday by the European Central Bank (ECB) that interest rates would be cut to 0.25%, and the shock downgrade of France's credit rating.

Ahead of crucial US jobs data later today which will give an indication of the health of the world's largest economy, the FTSE 100 was down around 0.44%, off 30 points at 6,667 just before midday, while the FTSE All Share was showing similar losses. Yesterday the surprise announcement by the ECB sent the euro tumbling as rates were cut from an already record low of 0.5% to just 0.25%. The euro has fallen further today to $1.341 versus the US dollar after the announcement by S&P that it has downgraded France's credit rating from AA+ to AA. European indices were also lower by mid-mor...