Stocks drop, Treasury yields dip after Fitch downgrades U.S. rating

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, August 1, 2023. REUTERS/Staff/File photo

U.S. 10-year Treasury yields were down 3 basis points, while credit default swaps, which insure exposure to U.S. Treasuries, were little moved, according to S&P Global Market Intelligence data. The U.S. dollar was up just 0.2% against a basket of peers. "It's true that this move by Fitch is somewhat based on outdated data, especially with the trajectory of inflation now at a more favourable gradient," Lund-Yates said.

While investors say the downgrade is unlikely to have a big impact on U.S. Treasuries, which underpin the financial system as an unrivalled global safe asset, it has injected some uncertainty into financial markets and cast renewed attention on the debt metrics of the world's largest economy. Tony Sycamore, an analyst with IG, said that apart from the Fitch move, there had been some disappointing data in the U.S. and China and some weaker-than-expected earnings, so people were taking money off the table.

France Dernières Nouvelles, France Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Stocks fall, Treasuries gain after Fitch downgrades US ratingAsian stocks traded lower while U.S. Treasury yields declined on Wednesday, after ratings agency Fitch unexpectedly downgraded the United States' top-tier sovereign credit rating.
La source: ReutersAfrica - 🏆 31. / 53 Lire la suite »

Stocks drop, Treasuries gain after Fitch downgrades US ratingAsian stocks and U.S. Treasury yields declined on Wednesday after ratings agency Fitch unexpectedly downgraded the United States' top-tier sovereign credit rating.
La source: ReutersAfrica - 🏆 31. / 53 Lire la suite »

Asia stocks near 16-month peak on economic optimism, Aussie eases before RBAData showed risks remain.
La source: ReutersAfrica - 🏆 31. / 53 Lire la suite »

Stocks, oil resilient amid cautious optimism on economyStocks were mostly resilient and oil hovered near recent highs on Tuesday as investors stayed positive over global economic prospects even as data showed signs of risks.
La source: ReutersAfrica - 🏆 31. / 53 Lire la suite »

Oil prices rise more than 1% after sharp drop in US crude stocksOil prices rose more than 1% on Wednesday, trading near their highest since April, after industry data showed a much steeper-than-expected draw last week in crude oil inventories in the U.S., the world's biggest fuel consumer.
La source: ReutersAfrica - 🏆 31. / 53 Lire la suite »