Global stock markets fell Wednesday after rating agency Fitch downgraded its US credit rating, citing “a steady deterioration in standards of governance” and the American government’s growing debt burden, APA reports citing CNN.
Japan’s benchmark Nikkei 225 (N225) index had its worst day of the year, ending down 2.3%, while Hong Kong’s Hang Seng (HSI) Index closed down 2.5%, after Fitch cut its rating on US debt to AA+ from AAA on Tuesday.
European stocks fared a little better but the region’s benchmark Stoxx 600 index fell 1.4% by 5.57 a.m. ET to its lowest level in two weeks. Germany’s DAX (DAX) dropped 1.4% and France’s CAC (CAC40) 40 fell 1.2%, while London’s FTSE 100 (UKX) also hit a two-week low, down 1.5%.
US stock futures slipped. The S&P 500 index was down 0.8% and the Nasdaq down 1.2% in pre-market. But US Treasuries prices ticked higher, shaving a couple of points off the 10-year yield to 4.03%.
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