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to the United States of its triple-A credit rating from Standard & Poor’s Corp. is fuelling more fear and uncertainty over the global recovery. Not only is the resilience of the U.S. economy in doubt, the debt crisis that continues to menace china shoes wholesale
Europe threatens to boil over again, just weeks after European leaders heralded a €440-billion rescue fund to bail out embattled governments. “Most likely, the impact of this downgrade will be more psychological than actual, as Moody’s and Fitch have recently reaffirmed the U.S.’s triple-A rating,” Bank of Montreal’s chief economist Sherry Cooper said Sunday. “S&P may be covering itself after doing so poorly during the housing meltdown. If they are right, they can’t be blamed for not having seen the risk this time. And if they are wrong, they yiwu china wholesale
can say their warning caused the Congress to do the right things to avert a catastrophe.”Here’s a rundown of what investors can expect this week: What could happen in financial markets Monday? S&P’s downgrade of the U.S. credit rating from triple-A to double-A-plus was unveiled after the close of financial markets Friday and is expected to roil global equities Monday. Stocks dollar items
began to tumble in key Middle Eastern markets over the weekend, and U.S. stock futures were already down sharply late Sunday. Commodities like gold and oil could be caught in the downdraft, while the decision could also cause turbulence in the bond market. Will the European Central Bank take more interventionist action this week? The European Central Bank, the monetary authority for the 17-member euro zone, will focus on buying more government bonds and bolstering financial system liquidity. The dollar stores
ECB announced Sunday a plan to buy more government bonds. The assumption is those purchases will focus on Italian and Spanish government debt to prevent those countries from becoming more ensnared in Europe’s debt crisis. While such a move is considered risky, purchases of government bonds would likely push down the yields on that debt. Germany and France, meanwhile, released a statement on Sunday saying the monetary union’s bailout fund would soon be able to buy government bonds of Italy, Spain, Greece, Portugal and Ireland.The European debt crisis has already caused Greece, Ireland and Portugal to seek bailouts and dollar item
it is now feared that higher borrowing costs could threaten the financial stability of Italy and Spain. Last week, the ECB reopened an unlimited funding facility for euro zone banks after the interbank loan market seized up on Thursday and it also bought Irish and Portuguese government bonds. What will happen to the U.S. dollar? The U.S. dollar is likely to sustain further losses in currency markets Monday, having already dollar store
lost more ground Sunday. The greenback is expected to lose ground against a slew of major currencies including the Swiss franc and Japanese yen. Losses against the euro, however, may be tempered by lingering worries over Europe’s ongoing debt crisis. There is also speculation the Bank of Japan and Swiss National Bank could take more interventionist action this week to restrain the appreciation of their respective currencies relative to the U.S. dollar. And the Bank of Japan is reportedly set to announce that it one dollar store
will buy more U.S. Treasuries. Will this affect borrowing costs for the U.S.? Although a downgrade could trigger more volatility in the bond market and potentially some selling dollar shops
early Monday, U.S. Treasuries will remain the world's safest and most sought-after security, which will keep financing costs at or near historically low levels. U.S. government bonds continued to strengthen even during the worst of the debt ceiling uproar. And the S&P downgrade has been expected for some time. The other major credit-rating agencies still rate Treasuries at triple-A. Even at the S&P's double-A-plus, Treasuries will remain the gold standard for government bonds. There wholesale products
are simply no alternatives with the size or safety of U.S. government bonds.SA