European markets sold off sharply again this morning

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% […]


Fiona Cincotta
By :  ,  Senior Market Analyst

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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.

 

See the City Index Economic Calendar and Companies Reporting Dates page for latest economic news and company events that are likely to impact the markets today.

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