Morning markets: FTSE falls on downbeat Fed comments

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The FTSE 100 has fallen 0.3% or 16 points to 5,413.5 in early trading after America's Federal Reserve said overnight there were "widespread signs of deceleration" in the US economy.

Home Retail fell furthest, down 3.9% to 212.6p after its forecast for full-year pre-tax profit came in the bottom half of analysts' estimates. Rival Kingfisher, which said in July second half sales had fallen, declined 1.7% to 211.3p. A 14% rise in first-half pre-tax profits to £410m at Morrison (Wm) Supermarkets beat analysts' expectation, but did not stop shares falling 2.1% to 286.5p. Meanwhile, Morgan Stanley recommended a move from overweight to equal weight on 3i Group, sending its shares 1.8% lower to 267p. Among the gainers, Lloyds Banking Group jumped 1.8% to 73.61p aft...

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