To worsen the prevailing debt crisis situation, Fitch reduced Italy's credit rating to A+ from AA- and Spain's credit rating to AA- from AA+.
Whole situation has gone for toss as now, Belgian bonds of 10 year also lowered when the government said that they have considered pros and cons of paying 4 billion euros for consumers of Dexia SA, and have agreed for the deal in which they would pay the loan to assure the lenders. Even, Belgium was of the view that its credit ratings could also be on the check after Italy and Spain.
It appears that the looming sovereign-debt crisis on the European nations has hit the financial market on Friday. Post revelation that the Fitch credit rating agency has downgraded the foreign and local currency ratings on Italy and Spain, the market saw a downfall.
Reports confirmed that UBS AG was seen slumping down by 6.2% to $11.28, and Deutsche Bank dropped by 5% to $35.15.
Continuously waning condition of the US and no workable solution at hands of Euro Zone countries forced US President Obama to lash out at China, and blamed it of trading in a way which could harm Beijing one day.
One year is left with Mr. Obama to ask for votes again for his Presidency and till then, he is leaving no stone unturned to sort this problem. He has the euro zone countries to put their acts together and get a viable solution before the G 20 summit, which would be held in November.
It has been revealed, according to a recent report, that Spain is going to pursue its banks to bear the loss incurred due to its multibillion liberations, just before the upcoming general elections.
It was revealed by the Socialist Government of the nation that the banking sector shall be paying for any sort of losses incurred during the process of reorganizing of the local saving banks. They shall o this with aid of the deposited guarantee funds that are backed with support by the industry.
It has been revealed, according to recent market developments, that Spain has been able to meet its target of maximum bonds being sold. They have been able to sell bonds worth 4.5 billion Euros, whereas the borrowing costs of the Eurozone also saw a fall, with the debt on the secondary market of the zone being supported by the European Central Bank.
There was sale of bonds by the Treasury that were due to be sold in April of the year 2014. The average yield for the same was recorded to be 3.589%. Securities, which were due in October 2014, recorded yield of 3.495%.
Woes are getting bigger among investors as analysts have shown big concerns and worries regarding the US market and the figure game.
According to the estimates of U.S. market analysts, the U.S. earnings growth could soon see steep fall, following the turmoil in Europe and weak Chinese economy which is hurting foreign support majorly today.
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