FTSE falls after US growth downgrade

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...