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Fitch downgrade Murika send shockwaves around world stock markets, why hah?
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Asia-Pacific markets fell Wednesday after ratings agency Fitch cut the U.S. credit rating from AAA to AA+, citing "expected fiscal deterioration over the next three years."
IG market analyst Tony Sycamore said this will spark risk aversion flows, which means lower equities in Asia, as well as safe haven buying of treasuries and currencies such as the Japanese yen and Swiss franc against riskier currencies, such as the Australian and New Zealand dollars.
Japan's Nikkei 225 led losses in the region, falling 2.3% and closed at 32,707.69, dragged by utilities and health technology stocks, while the Topix is also down 1.52% and ended at 2,301.76.
Hong Kong's Hang Seng index also slipped 2.27% in its final hour, mainly due to health-care stocks. Mainland Chinese markets were also in negative territory. The Shanghai Composite slid 0.89% to close at 3,261.69, and the Shenzhen Component was also down 0.35% to end at 11,104.16.
South Korea's Kospi fell 1.9% to 2,616.47, snapping a four day win streak and the Kosdaq also dipped 3.18% to 909.76. The country saw its inflation rate for July come in at 2.3% — its lowest level in 25 months.
Meanwhile, Australia's S&P/ASX 200 dropped 1.29% to close at 7,354.7 a day after the Reserve Bank of Australia held its benchmark interest rate at 4.1%.
IG market analyst Tony Sycamore said this will spark risk aversion flows, which means lower equities in Asia, as well as safe haven buying of treasuries and currencies such as the Japanese yen and Swiss franc against riskier currencies, such as the Australian and New Zealand dollars.
Japan's Nikkei 225 led losses in the region, falling 2.3% and closed at 32,707.69, dragged by utilities and health technology stocks, while the Topix is also down 1.52% and ended at 2,301.76.
Hong Kong's Hang Seng index also slipped 2.27% in its final hour, mainly due to health-care stocks. Mainland Chinese markets were also in negative territory. The Shanghai Composite slid 0.89% to close at 3,261.69, and the Shenzhen Component was also down 0.35% to end at 11,104.16.
South Korea's Kospi fell 1.9% to 2,616.47, snapping a four day win streak and the Kosdaq also dipped 3.18% to 909.76. The country saw its inflation rate for July come in at 2.3% — its lowest level in 25 months.
Meanwhile, Australia's S&P/ASX 200 dropped 1.29% to close at 7,354.7 a day after the Reserve Bank of Australia held its benchmark interest rate at 4.1%.
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https://www.bloomberg.com/news/arti...ts-quarterly-borrowing-estimate-to-1-trillion
US Treasury Boosts Quarterly Borrowing Estimate to $1 Trillion
Department had previously estimated $733 billion for quarter
Treasury still restocking cash balance after debt-limit fight
The US Treasury boosted its estimate for federal borrowing for the current quarter as it addresses a deteriorating fiscal deficit and keeps replenishing its cash buffer.
The Treasury Department increased its net borrowing estimate for the July through September quarter to $1 trillion, well up from the $733 billion amount it had predicted in early May.
US Treasury Boosts Quarterly Borrowing Estimate to $1 Trillion
Department had previously estimated $733 billion for quarter
Treasury still restocking cash balance after debt-limit fight
The US Treasury boosted its estimate for federal borrowing for the current quarter as it addresses a deteriorating fiscal deficit and keeps replenishing its cash buffer.
The Treasury Department increased its net borrowing estimate for the July through September quarter to $1 trillion, well up from the $733 billion amount it had predicted in early May.
- Joined
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- Messages
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- 113
- Joined
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- Messages
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- 113
Just a day after the Treasury Department released a $1 trillion borrowing estimate for the third quarter, questions are being raised about the extent to which foreign and domestic buyers can continue to keep up their demand for U.S. government debt.
Further details about Treasury’s financing need will be released at 8:30 a.m. on Wednesday.
For now, the $1 trillion estimate, the largest ever for the July-September period, has analysts concluding that the U.S. is facing a deteriorating fiscal deficit outlook and continuing pressure to borrow.At stake for the broader fixed-income market is whether the presence of large ongoing...
Further details about Treasury’s financing need will be released at 8:30 a.m. on Wednesday.
For now, the $1 trillion estimate, the largest ever for the July-September period, has analysts concluding that the U.S. is facing a deteriorating fiscal deficit outlook and continuing pressure to borrow.At stake for the broader fixed-income market is whether the presence of large ongoing...
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