Sunday, 7 August 2011

gulfnews : Stock markets on the edge

The region's stock markets are likely to trade sharply lower in the week ahead following credit rating agency Standard & Poor's (S&P) move to strip the US of its prized AAA credit rating, international oil prices coming off their recent highs due to headwinds facing major world economies and mounting sovereign debt concerns in Europe.

S&P downgraded the US credit rating for the first time since 1941, lowering it one level to AA+ while keeping the outlook at ‘negative.'

The move stoked fears the borrowing costs for the world's largest economy currently grappling a slowdown in growth are going to increase which may send the country and the global economy spiralling back into recession.

No comments:

Post a Comment