Stocks plunge after US debt rating downgrade

The PSEi plunged 110.52 points or 1.78 percent to close at 6,483.28 as losses were led by the Mining and Services counters. Volume remained thin at 787 million shares worth P4.23 billion as losers swamped gainers 154 to 27 with 47 unchanged.

“Philippine shares along with the whole region plummeted, as independent rating agency Fitch cut the rating from the top level of AAA to a notch lower at AA+,” said Regina Capital Development Corporation Managing Director Luis Limlingan. He added that “The announcement comes after US lawmakers waited until the last moment to agree on a debt ceiling deal just this May. While the company Fitch noted steady deterioration in governance over the last 20 years, Secretary Janet Yellen called the countered this downgrade as ‘arbitrary.’”

Philstocks Financial Assistant Research Manager Claire Alviar said “The downgrade is seen to put upward pressure on the US’ interest rates which in turn adds to the challenges on their economy. Note that the US is an economic partner to many Asian countries.” She added that, “the downgrade implies downside risks on the US’ fiscal position which in turn dents investors’ confidence and may cause their funds to run towards safe havens which is negative for the equities markets.”

Brasil Últimas Notícias, Brasil Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

PBBM worried price of rice may rise with low PH stocksIn a recent press conference while giving out aid to the storm-stricken provinces in Northern Luzon, the President said he was nervous that the market price of rice would skyrocket despite the government’s plan to import more of the staple-- READ MORE:
Fonte: MlaStandard - 🏆 20. / 55 Consulte Mais informação »

Stocks halt slide, ends flatThe local stock market stopped sliding and ended almost flat on the first day of August 1 as investors wait for more cues from upcoming economic and earnings reports.
Fonte: manilabulletin - 🏆 25. / 51 Consulte Mais informação »

Wall Street holds gains ahead of earnings, jobs dataWall Street and global stocks edged up on Monday while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings and a key employment report due this week. | Reuters
Fonte: inquirerdotnet - 🏆 3. / 86 Consulte Mais informação »