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.

Even the simmering issue has affected the rating of 12 U. K. financial institutions, as it was told that Moody's Investors Service has lowered its rating on the belief that the government would not be extending more financial support to those 12 banks.

It was seen that Lloyds Banking Group PLC moved down by 2.3% to $2.12, while Royal Bank of Scotland Group PLC dropped by 4.2% at $7.32.

However, the breather comes in the form of an unemployment report on Friday, which claimed that contrary to the expectations of economists, U. S. employers created 103,000 jobs last month. Against the fears that US is heading towards a long term unemployment crisis, this report has given a glimmer of hope to millions of unemployed youth.

Moreover, the NASDAQ composite index was seen dropping by 1.1%, to 2,479.35, the Russell 2000, dropped by 2.6% to 656.21, while the Dow was seen moving up by 1.7%.