US shares fall after WB trims outlook

US stocks on Wednesday opened lower after the World Bank (WB) trimmed its 2014 economic forecast and a top Republican leader faces the loss of his congressional seat after a shock vote. Five minutes into trade, the Dow Jones Industrial Average fell 63.66 points (0.38 per cent) to 16,882.26. The broad-based S&P 500 shed 6.77 (0.35 per cent) to 1,944.02, while the tech-rich Nasdaq Composite Index lost 15.35 (0.35 per cent) at 4,322.65. The WB late Tuesday lowered its 2014 global growth forecast to 2.8pc from its January forecast of 3.2pc, in part due to bad weather in the US that depressed economic activity and the Ukraine crisis. The WB also predicted flat growth in developing countries. Meanwhile, House Republican Leader Eric Cantor unexpectedly lost a primary election to Tea Party-backed insurgent David Brat. The result revived the ultra-conservative Tea Party’s prospects, potentially deepening gridlock in Washington. Briefing.com analyst Patrick O’Hare rated Wednesday’s losses in the stock market primarily to profit taking after a rally that produced records for the Dow and S&P 500 over the last week. O’Hare said the WB’s lowered forecast was not a surprise and that Cantor’s defeat, while unexpected, did not necessarily change things much because ‘it’s not like the stock market was banking on a bipartisan love-fest in Congress anytime soon,’ according to AFP.