Downbeat Bernanke drives down markets

The FTSE 100 has followed the lead of the US and opened lower this morning, as investors weigh up a gloomy economic update from Federal Reserve chairman Ben Bernanke.

In early trading London's leading index of shares has fallen 31.84 points, or 0.61%, to 5,182.80.

Bernanke's warning the US economy faced "unusually uncertain" prospects hit US stocks on Wednesday, with the Dow Jones IA falling 1.07% to 10,120.53. The broader S&P 500 lost 1.28% to 1,069.59 and the tech-heavy Nasdaq dived 1.58% to 2,187.33.

Bernanke told the US Senate banking committee yesterday to expect several years of low economic growth.

"Even as the Reserve continues prudent planning for the ultimate withdrawal of monetary policy accommodation, we also recognise that the economic outlook remains unusually uncertain," he said.

"We will continue to carefully assess ongoing financial and economic developments, and we remain prepared to take further policy actions as needed."

In London, Autonomy has suffered substantial losses early, with the software giant down 11.6% to £16.02.