Join Sophia Ziaee of City Index (http://www.cityindex.co.uk/) as she brings you the latest news from the trading floor on Thursday 22nd September 2011: European shares have fallen sharply this morning after the U.S. Federal Reserve's warning of significant risks to the already struggling economy and on data showing a further contraction in China's manufacturing sector. Britain's FTSE 100 index is already trading down 2.5% tracking hefty falls on Wall Street and in Asia. The Fed's cautious comments came as it, as expected, unveiled fresh economic stimulus measures, dubbed "Operation Twist" by the financial markets, which will see it buy more long-term Treasury securities in an effort to lower borrowing rates. Banks also suffered on Wall Street after Moody's downgraded the credit ratings of Bank of America, Citigroup and Wells Fargo driven by the conclusion that the government was less likely to provide support for a faltering bank. The selling continued in Asia last night, where Japan's Nikkei fell 2 percent. Elsewhere this morning The French CAC 40 has fallen 2.7 PCT and GERMANY'S DAX is DOWN 3.4 PCT Also keep a close eye on currencies today as Sterling hit an all-time low versus the yen last night after concerns about a slowdown in the U.S. economy prompted investors to dump higher-risk currencies. The pound fell as low as 118.60 yen. Sterling fell across the board, hitting an 8 1/2-month low versus the dollar in earlier trade. Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.