FTSE falls on gloomy Fed forecast

The FTSE has opened in negative territory after a gloomy assessment of the US economy pushed European shares lower.

Shortly after opening, London's leading index was down 0.8%, or 46 points, to 5726 as investors took stock of US Federal Reserve chairman Ben Bernanke's warnings over the state of the US economy. The Fed scaled down its growth forecast from between 3.1%-3.3% to 2.7% and 2.9%. Part-nationalised banks RBS and Lloyds feature amongst the morning's losers, both down around 2%, after deputy prime Minister Nick Clegg backed proposals to give the public shares in the banks. Barclays, too, is 1.9% off the mark. Miners Vedanta Resources and Kazakhmys complete the losers board, down 2.9% and 1.8...