Menu Close

How Bad Will Economic News Get?

Investors, brace yourselves for more potential chaos.

After a week of massive declines across global financial markets, the stage was set for more selling pressure in Europe and on Wall Street as stock exchanges in Asia opened earlier this morning with bouts of panic selling.

Japan’s Nikkei 225 average fell 1.4 percent in early trading. Middle Eastern markets, which trade Sundays, reacted with swift sell-offs. Israel’s Tel Aviv stock exchange dropped 7 percent, while in Egypt, stocks fell over 4 percent.

The catalyst: a late Friday downgrade of the United States’ AAA credit rating by Standard & Poor’s, followed by the credit agency’s weekend warning that further downgrades could come if Washington remains mired in political gridlock over solving the nation’s long-term debt woes.

The USA’s first-ever downgrade could raise borrowing costs for government, business and consumers. For already skittish investors, it’s just the latest in a string of jolting bad news: lingering high unemployment, a widening European debt crisis and eroding consumer confidence in the economy and political leaders.

http://www.lohud.com…ey=mod|mostview

Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

RSS
Follow by Email
LinkedIn
Share

Discover more from The Wall Street Examiner

Subscribe now to keep reading and get access to the full archive.

Continue reading