Fitch Fueled Concerns in Market

Fitch Fueled Concerns in Market
Fitch Fueled Concerns in Market
Markets were knocked down by concerns mounting over the 17-bloc euro nation’s debt crisis, as Fitch ratings fueled concerns saying Italy nears having its credit rating slashed. Now, Fitch will assign France and Spain under credit watch for possible downgrades until the month end.

However, Germany allotted 3.1533 billion euros of bonds maturing 2017 with 0.75 percent coupon from 8.967 billion euros, while bid-to-cover- ration at s strong 2.84 times and the average yield at 0.9 percent, missing the sale target of 4.0 billion euros. Furthermore, growth concerns reignited after Germany grew 3 percent in 2011 from 3.7 in 2010.

Thereby European shares dropped with DAX declining 0.17% while CAC slipped by nearly 0.19%. As concerns returned somehow, demand for higher yielding assets is decreasing; the euro dropped trading at 1.2683, while the pound slipped trading around 2-months low at 1.5322.

The USD is moving with an upside momentum around the 81.39 level, while the yen is almost unchanged at 76.91. The AUD dropped slightly trading around the 1.0292, where gold gained trading around $1642.52, while oil declined again  trading at $101.88 on EIA report.

Leave a Reply

Your email address will not be published. Required fields are marked *