Markets Turned Flat after France Auction

Markets were flat today, as Euro managed to cover the gap that has emerged over the weekend after France lost its top credit rating AAA, while eight other European nations saw their credit ratings being cut by S&P on Friday.

On the other hand, the sentiment improved further in the market after the French bond auction, which came better than expectations, as the country was able to access the capital market easily on lower yields and strong demand despite the fact that Standard and poor’s rating agency downgraded the French top credit rating of AAA by one notch to AA+.

Knowing that investors moved towards high yielding assets with European stocks gaining some momentum; the euro covered the gap and European stocks inclined erasing earlier losses.

In Europe, CAC 40 rose nearly 1.0%, while DAX inclined by 1.4%, while the American market is closed today, as this day is Martin Luther King Day in the United States.

In Currencies market, the euro inclined against USD trading around $1.2674 compared with opening levels at $1.2634, as demand for higher yielding assets increased somehow, while the pound rose trading at $1.5332.

The USD lost the momentum today trading around the 81.37 level, while the USD/YEN pair dropped to trade at 76.71. The AUD/USD pair inclined trading around the 1.0331, where gold rose trading around $1644.50, and oil also jumped trading at $99.57.

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