Source: Sharecast
The pan-regional Stoxx 600 index was down 0.57% in early deals at 546.70 with all major bourses following suit.
“The week starts with a jump in US yields and a weaker dollar after Moody’s downgraded the US credit rating from the top Aaa to Aa1, citing concerns about the US’ rapidly rising debt toward the $37 trillion mark and a budget deficit reaching 7% — the highest in peacetime,” said Swissquote Bank analyst Ipek Ozkardeskaya.
“Moody’s decision is unsurprising, as S&P and Fitch had already downgraded the US below AAA. If Moody’s hadn’t followed suit, it risked undermining its own credibility.”
US government bonds were weaker, with the 30-year Treasury yield up to 5% from 4.89% on Friday night just before the downgrade.
In equity news, shares in BNP Paribas rose after the French bank unveiled a €1.08bn share buyback plan.
Reporting by Frank Prenesti for Sharecast.com