Markets Tumble on European Downgrade Reports

Markets Tumble on European Downgrade Reports
Markets Tumble on European Downgrade Reports
Markets turned pessimistic today erasing early gains, as reports came out lately today showing that S&P will move forward with euro area downgrades with French TV saying that the nation lost its top credit rating.

Knowing that investors moved towards low yielding assets with European stocks snapping the gains, the euro turning lower and European stocks surrendering earlier gains. The news reports suggested that Standard & Poor’s is set to downgrade the credit rating of several euro zone nations according to government sources.

And that overshadowed the upbeat Uni. of Michigan Confidence index. In Europe, CAC 40 dropped nearly 0.3%, while DAX declined by 0.74%, on the other hand, in America, the Dow Jones slipped by 0.67%, and the S&P 500 index dropped by 0.73%.

In Currencies market, the euro slipped heavily against USD trading around $1.2677 compared with opening levels at $1.2813, as demand for higher yielding assets decreased, while the pound dropped trading at $1.5294.

The USD gained momentum today after declining earlier trading around the 81.47 level, while the USD/YEN pair inclined to trade at 76.91. The AUD/USD pair dropped trading around the 1.0295, where gold declined trading around $1637.00, and oil also slipped trading at $98.82.

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