10 October 2014

S&P Cuts France's Sovereign Credit Outlook From 'Stable' to 'Negative'

The US equity markets, which had been trading weakly all day, turned decidedly south when this breaking news was released, to the minute.  I happened to see the flash headline, but the story did not appear generally in the news.

I think this merely demonstrates how skittish and thin the algo-dominated US stock markets really are.

As a reminder the US Bond markets are closed on Monday, but the stock markets will be open.

Reuters - France outlook revised to negative. AA ratings affirmed.

France ratings remain supported by view of French economy's high income per capita and productivity, diversification, and stable financial sector.

French government's budgetary position is deteriorating in light of France's constrained nominal and real economic growth prospects.

Negative outlook indicates view that robust recovery of French economy could prove elusive and public finances could deteriorate beyond 2014.