The pan-European Stoxx 600 index closed 0.9% lower Tuesday, with all major bourses and sectors ending the session in negative territory.34 Min AgoFitch Ratings'of the U.S. to AA+ from AAA should have "little direct impact" on financial markets, Goldman Sachs said in a note.
The bank said it's "unlikely" that there are major Treasury securities holders who would be forced to sell based on the ratings change. Fitch Ratings cited "expected fiscal deterioration over the next three years," an erosion of governance and a growing general debt burden as reasons for the downgrade.