UK Shares Fall as Moody’s Downgrades Five Spanish Regions
This morning, the FTSE is down 35 points at 5847 as UK shares spread betting markets are knocked back by Spanish regional downgrades.
Stocks are in the red across Europe after rating agency Moody’s downgraded five Spanish regions.
The credit rating for the Spanish government remains unchanged at one notch above junk status, but this will still put pressure on Madrid as the semi-autonomous regions will need to lean on them even more.
In other European news, Greece is still hammering out a deal with the Trokia to get their hands on $31 billion of bailout funds.
Athens is hoping to raise nearly $9 billion from its state asset-stripping programme.
The figure has been lowered by the IMF from $18 billion, in order to make the targets easier to achieve and avoid a Greek default.
In UK corporate news, ARM Holdings, suppliers of microchips to Apple’s iPhones, reported a 20% rise in revenues.
The owner of Costa Coffee, Whitbread, also saw revenue increase by 14%, with sales boosted by the Olympics and Diamond Jubilee celebrations.
After today’s New York close, social network giant Facebook will announce their third-quarter numbers.
With its share price having dropped nearly 50% since the IPO, will shareholders ‘like’ the results?
Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
Financial Market Comments from David Madden, Market Analyst, 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.