Latest news with #Moody'sDowngrade
News.com.au
22-05-2025
- Business
- News.com.au
US markets down amid concerns over America's budget position
CommSec's Tom Piotrowski claims concerns about the US budget position have been 'bubbling away' on the sidelines as markets sink. 'It's a situation where we've alluded to it earlier in the week – concerns about the US budget position have been bubbling away on the sidelines,' he told Sky News Australia. 'The fact that the Moody's credit rating agency downgraded US debt earlier in the week as well – these have been kernels of concern ... and as a result, we've seen the US equity market sell off by a decent clip.'
Free Malaysia Today
20-05-2025
- Business
- Free Malaysia Today
US stocks edge higher while dollar dips after Moody's downgrade
US Treasury yields surged early, reviving the 'Sell America' narrative that shook markets after Donald Trump's tariff move in April. (AP pic) NEW YORK : Wall Street stocks finished a meandering session higher Monday, shrugging off Moody's downgrade of US sovereign debt, which could balloon further. Yields of US Treasury bonds spiked early in the day in a dynamic that revived talk of the 'Sell America' narrative that unsettled markets in early April following President Donald Trump's sweeping tariff announcements. But US Treasury yields subsequently eased as markets concluded that Moody's analysis contained no surprises. After the knee-jerk reaction, 'the market settles down and focuses on the economic fundamentals,' said Subadra Rajappa, head of US rates strategy at Societe Generale. The downgrade reflects serious concerns about the US' fiscal picture, but these were well known prior to the Moody's downgrade, Rajappa said. All three major US indices finished with modest gains. The dollar retreated somewhat against the euro and other major currencies. But the move was less substantial than during most volatile stretches earlier this year. In comparison with that turbulent period, a closely-watched volatility index remained relatively stable on Monday. Stocks have rallied since Trump suspended many of his most onerous tariff measures. Gold, seen as a safe haven investment, jumped more than one percent. In Europe, London and Frankfurt erased early losses to close higher after UK and EU leaders reached a series of defense and trade accords at a landmark summit, the first since Britain's acrimonious exit from the European Union. British Prime Minister Keir Starmer said leaders had agreed a 'win-win' deal that his office said would add nearly £9 billion (US$12 billion) to the British economy by 2040. The euro, meanwhile, strengthened despite a cut to the eurozone's 2025 economic growth forecast due to global trade tensions sparked by Trump's tariffs. The European Commission said the 20-country single currency area's economy should grow 0.9% in 2025 – down from a previous forecast of 1.3% – due to 'a weakening global trade outlook and higher trade policy uncertainty'. 'Underpinned by a robust labor market and rising wages, growth is expected to continue in 2025, albeit at a moderate pace,' EU economy chief Valdis Dombrovskis said. In company news, Walmart returned to the list of firms feeling a rollercoaster effect under Trump, after the US president slammed the retail giant for warning of price increases due to his tariffs. Trump called on the company to 'EAT THE TARIFFS' on social media, adding, 'I'll be watching.' Walmart shares finished slightly lower on Monday.
Bloomberg
19-05-2025
- Business
- Bloomberg
Concerned For Americans: Rep. Clyburn on Tax Bill
Representative Jim Clyburn (D) South Carolina weighs in on the GOP Tax Bill and whether or not the proposals within the bill will ultimately help the Democratic Party reclaim the House majority during the 2026 Midterm elections. He also shares his views on Moody's downgrade of the United States and the recent news of former President Biden's prostate cancer diagnosis. Rep. Clyburn speaks with Kailey Leinz and Joe Mathieu on the late edition of Bloomberg's "Balance of Power." (Source: Bloomberg)
The Independent
19-05-2025
- Business
- The Independent
FTSE 100 claws back losses after US credit rating downgrade
The FTSE 100 ended the day marginally higher on Monday, regaining its early losses which were sparked by worries over US national debt. London's blue-chip index ended the day up 14.75 points to finish at 8,699.31, a 0.17% rise. Markets had initially dropped on Monday after ratings agency Moody's downgraded the US from its triple-A credit rating at the end of last week. Moody's pointed to higher US national debt over the last decade, which is now 36 trillion dollars (£26.9 trillion), and swelling interest costs, as its main reason for the downgrade. Susannah Streeter, an analyst at Hargreaves Lansdown, said: 'Given the pledge by Trump to cut taxes, it's feared the situation could deteriorate further.' She added: 'The implications of Trump's erratic policymaking are causing caution to creep back in, dampening down the enthusiasm of recent weeks.' Meanwhile, the UK Government announced a 'reset' deal with the European Union which it said cuts red tape for travellers and businesses, boosting the economy by £9 billion by 2040. Chris Beauchamp, an analyst at online trading platform IG, said the deal is 'yet another signal of how Trump's abrasive approach continues to upend the global order'. In Europe, Germany's Dax rose 0.58% and France's Cac 40 fell 0.039%. On Wall Street, the S&P 500 was down 0.29% as UK markets were closing, while the Dow Jones was down 0.10%. Sterling was up 0.64% against the US dollar at 1.3367, while it was 0.12 down against the euro at 1.1879. In company news, drinks giant Diageo warned that it expects US trade tariffs to cost the company around 150 million US dollars (£113 million) each year. The Guinness and Johnnie Walker maker said it would be impacted by a 10% tariff on UK and European imports into the US, after President Donald Trump launched a raft of tariffs last month. It said it believes its current plans will mitigate around half of the impact of these higher costs on its profit and it will work on further measures to offset the impact. Diageo shares fell 1.07%. Elsewhere, Dutch technology investor Prosus formally launched its 4.1 billion euro (£3.4 billion) agreed takeover of Just Eat to create a European tech 'champion'. Prosus, which is majority-owned by South Africa's Naspers, has agreed to pay 20.30 euro (£17.07) a share to buy the takeaway delivery giant. The firm already owns a 28% stake in Just Eat rival Delivery Hero. The biggest risers on the FTSE 100 were easyJet, up 17.2p to 560p, IAG, up 8.5p to 331.6p, Fresnillo, up 26p to 1026p, Tesco, up 8.2p to 371.1p, and Imperial Brands, up 52p to 2756p. The biggest fallers on the FTSE 100 were BP, down 7.1p to 365.7p, Spirax, down 115p to 5980p, JD Sports, down 1.5p to 91.24p, Melrose Industries, down 7.4p to 458p, and Pershing Square, down 58p to 3740p.
CNA
19-05-2025
- Business
- CNA
Treasury yields rise, stocks and dollar down with focus on tax bill, US downgrade
NEW YORK/LONDON :Longer-dated Treasury yields gained while global stock indexes and the dollar eased on Monday amid concerns about a U.S. tax bill and the U.S. debt load and following Moody's downgrade of the U.S. sovereign credit rating. Late on Friday, Moody's Investors Service cut the United States' sovereign credit rating from the top 'Aaa,' drawing attention to the country's deteriorating fiscal outlook. U.S. President Donald Trump's sprawling tax-cut bill received approval from a key congressional committee on Sunday. Republicans who control the U.S. House of Representatives will try to push the bill toward passage this week. The 30-year Treasury yield hit an 18-month high, with investors concerned that the tax bill will increase the debt load by more than previously expected. The 30-year bond yield was up 9.4 basis points at 4.992 per cent after touching 5.037 per cent, the highest since November 2023. "What Moody's did was really more symbolic than anything else. The other agencies had already downgraded the debt," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "Yes, yields are moving higher on the news, and could spike a bit higher. But they are moving up for other reasons as well," he added. "In general the (stock) market is not really reacting all that much to the Moody's announcement. Rather, it's a market that's come up and is looking to perhaps consolidate its recent moves." U.S. Treasury Secretary Scott Bessent used television interviews on Sunday to dismiss the Moody's downgrade, while warning trade partners they would get maximum tariffs if they did not offer deals in "good faith". Bessent heads to a G7 meeting this week for more talks. The Dow Jones Industrial Average fell 59.42 points, or 0.15 per cent, to 42,592.31; the S&P 500 fell 24.46 points, or 0.41 per cent, to 5,933.92; and the Nasdaq Composite fell 119.50 points, or 0.62 per cent, to 19,091.89. The S&P 500 had registered its fifth straight day of gains on Friday. MSCI's gauge of stocks across the globe fell 1.73 points, or 0.20 per cent, to 878.89. The pan-European STOXX 600 index fell 0.17 per cent, while Europe's broad FTSEurofirst 300 index fell 3.99 points, or 0.18 per cent MSCI's broadest index of Asia-Pacific shares outside Japan closed lower by 0.5 per cent. A mixed bag of Chinese data showed the economy there was struggling. Trump's tariff war has sapped consumer sentiment, and analysts will be scouring earnings from Home Depot and Target this week for an update on spending trends. Trump said on Saturday that Walmart should "eat the tariffs" after the world's largest retailer said it would have to start raising prices due to the levies. The U.S. dollar weakened broadly, hitting a more than one-week low against the safe-haven yen, Swiss franc and euro. Against the Japanese yen, the dollar was down 0.38 per cent at 145.06. U.S. RATES NOT FALLING SO FAST Atlanta Federal Reserve president Raphael Bostic said in comments to CNBC on Monday the central bank may only be able to cut interest rates by a quarter point over the rest of the year given concerns about rising inflation stoked by higher import taxes. In an interview published over the weekend, European Central Bank President Christine Lagarde said the dollar's recent decline reflected a loss of confidence in U.S. policies. In commodities, U.S. crude rose 0.24 per cent to $62.64 a barrel and Brent rose to $65.45 per barrel, up 0.06 per cent on the day. Spot gold rose 1 per cent to $3,234.34 an ounce. U.S. gold futures rose 1.54 per cent to $3,231.10 an ounce.
