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11 Mar 2013
European indexes and US futures in risk-off on Italy downgrade and US budget
The German DAX 30 (-0.29%), the French CAC 40 (-0.46%), the Italian FTSE MIB (-0.91%) and the Spanish IBEX 35 (-1.61%) are falling on Monday, like most European equity indexes and US futures such as S&P 500 (-0.13%), Nasdaq 100 (-0.20%) and Dow Jones (-0.11%).
The risk-off attitude seen today is in reaction to Fitch's announcement of a sovereign rating downgrade to Italy on Friday. The rating cut to BBB+ with a negative outlook, noting increased political uncertainty.
Adding to the turmoil are concerns regarding the US budget as a compromise between the parties remains a touch challenge.
Italy GDP contracted -0.9% in Q4 (QoQ) as expected, but didn't actual annualized Q4 data came in at -2.8%, instead of the expected -2.7%, after the Q3 being revised lower from -2.7% to -2.8%.
The German trade surplus eased from €16.9B to €15.7B as imports (+3.3% vs +1.0% consensus) rose more than exports (+1.4% vs +0.3% consensus) in January. French industrial output dropped -1.2% in January, instead of the +0.1% expected.
The risk-off attitude seen today is in reaction to Fitch's announcement of a sovereign rating downgrade to Italy on Friday. The rating cut to BBB+ with a negative outlook, noting increased political uncertainty.
Adding to the turmoil are concerns regarding the US budget as a compromise between the parties remains a touch challenge.
Italy GDP contracted -0.9% in Q4 (QoQ) as expected, but didn't actual annualized Q4 data came in at -2.8%, instead of the expected -2.7%, after the Q3 being revised lower from -2.7% to -2.8%.
The German trade surplus eased from €16.9B to €15.7B as imports (+3.3% vs +1.0% consensus) rose more than exports (+1.4% vs +0.3% consensus) in January. French industrial output dropped -1.2% in January, instead of the +0.1% expected.