Spreadex Market Update

Global trade confidently



Global markets continued to trade confidently today as investors refused to allow news that Moody’s has downgraded the UK’s credit rating from AAA to AA1, due to sluggish growth, to detriment investors’ optimism over the equity markets.  Clearly investors are thrilled that Japan and the US may continue with their stimulus measures to help boost their economic outputs and are thus not overly concerned with the downgrade.

 

In fact, some investors have taken Moody’s announcement to have positive consequences for the UK.  The downgrade has led to further losses in sterling which will help support export-led companies which is a key factor some UK policy makers believe will aid in the rescue of the economy.  Whether such companies will have the resources to help exploit a weak sterling for a competitive advantage is perhaps another issue.


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