US growth downgrade weighs on world markets

"European stock markets and Wall Street futures gave up earlier gains Tuesday after figures showed that the U.S. economy grew less than previously estimated in the third quarter. In Europe, the FTSE 100 index of leading British shares was up 41.39 points, or 0.8 percent, at 5,335.38 while Germany's DAX rose 15.29 points, or 0.3 percent, to 5,945.82. The CAC-40 in France was 18.95 points, or 0.5 percent, higher at 3,891.01. Wall Street was poised to open higher — Dow futures were up 33 points, or 0.3 percent, at 10,375 while the broader Standard & Poor's 500 futures rose 3.8 points, or 0.3 percent, at 1,112.

However, European markets and Wall Street futures had been trading even higher before the Commerce Department reported that the U.S. economy grew at an annualized rate of 2.2 percent in the third quarter. That was way down on its previous estimate of 2.8 percent made just a month ago and stoked concerns that the recovery in the world's largest economy may not be as strong as anticipated in the markets."

The Associated Press: US growth downgrade weighs on world markets