Saturday, August 13, 2011

US STRIPPED OF ITS AAA CREDIT RATING:

John Santiago works on the floor of the New York Stock Exchange Friday, Aug. 12, 2011. (AP Photo/Richard Drew) Photo: AP"

The US was stripped of its AAA credit rating by S & P. Following the downgrade, the US stock market which has witnessed continuous plunge since late July 2011 got its worst hit on Monday August 8th - the S&P index plunged by 6.7 percent in the first trading session (the biggest slump since December 2008). In response to the downgrade, the Federal Reserve said "it will leave benchmark interest rate at a record low through mid 2013. Amidst uncertainty and fear and slump in major banks stocks in the US, the stock market remained largely volatile during the week - on this note it was reported that "never before has the S & P 500 index reversed moves that large each day over four sessions."  Read more here & here.

In another news. JAPAN CUTS GROWTH FORECAST TO 0.5%: To reflect the slump in output following the March earthquake, Japan cuts its economic growth forecast for 2011 to 0.5% from 1.5%. Watch Video here.

1 comment:

  1. [...] US STRIPPED OF ITS AAA CREDIT RATING; JAPAN CUTS GROWTH FORECAST TO 0.5% [...]

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