FTSE Spread Betting Market Slips Lower After France Loses AAA Rating
The FTSE has gradually slipped lower in the opening session, down around 25 points in mid-morning trade.
Those hoping for sound and fury this morning as markets get their chance to react to Friday’s S&P downgrade of most of the Eurozone have been sorely disappointed.
The FTSE index even managed to eke out small gains in the opening minutes of the day, but as the morning grinds on it has edged inexorably lower.
Although Friday’s announcement was momentous, given that it saw France lose its AAA rating, the event had been widely expected, dulling the impact.
It provided nothing new for investors, merely reinforcing facts that we all knew already.
Perhaps the greater danger will be the breakdown of Greek debt talks, pushing that nation closer to default.
If Greece were to up sticks and leave the currency, then this Pandora’s box could prove to be far worse than a simple statement of the obvious from a ratings agency.
Carnival shares came under the expected pressure this morning, down 18% so far, following the tragedy off the Italian coast.
The company thinks the incident will cost it $95 million, but other estimates suggest it could hit earnings for the year by as much as $200 million.
With US markets closed for the Martin Luther King holiday, no economic data will be released this afternoon.
Thus, the focus remains, as ever, on the travails of the single currency and the increasingly desperate attempts to save the euro.
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Financial Market Comments from David Jones, Chief Market Strategist, IG Index.
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.
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