European markets sold off sharply again this morning

<p>European markets sold off sharply again this morning as concerns over Greece and Spain continue to weigh on sentiment in early trading. FTSE lost 4.3% […]</p>

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  • European markets sold off sharply again this morning as concerns over Greece and Spain continue to weigh on sentiment in early trading.
  • FTSE lost 4.3% this week with 7.5% loss that the UK blue-chip index has suffered since the beginning of May.
  • Moodys sweeping downgrade of 16 Spanish banks including Santander eurozones biggest bank, saying a weak economy and govs reduced ability to support troubled lenders.
  • Fitch downgraded Greece’s credit rating CCC to minus B highlighting the heightened risk that the country might have to leave the euro.
  • With this in mind we are seeing investors continue to sell out of their more risky assets.
  • Miners and Financials heading up the losers on the FTSE 100.
  • Very few positives in the sea of red – defensive stocks hold up the best utility companies Severn Trent 0.1% / United Utilities 0.15%.
  • A lack of economic data to be released today.
  • Investors will be focusing all their attention on the Facebook IPO as the US markets open.
  • Next week – EU Zone /Inflation Figures UK /GDP Figures UK.

 

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