Last Updated January 19, 2012
Crisis continues with sovereign downgrades
This week has seen continued uncertainty in Europe’s financial markets following the downgrade of several European governments’ credit ratings by Standard & Poor’s and ongoing worries about a looming default from Greece.
Standard & Poor’s decision to downgrade sovereigns including France, Austria, Italy, Spain and Portugal, and the subsequent downgrade of the EFSF, the eurozone bailout fund, highlighted concerns over politicians’ attempts to get their fiscal houses in order. “It’s difficult to quibble with S&P’s reasoning for its actions,” said Chris Scicluna, head of economic research at Daiwa Capital Markets.
