The latest US debt downgrade has failed to put much of a dent in the stock market rally, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks shrug off Moody’s downgrade
Older hands in this market will remember when downgrades of US debt meant something, at least for a day or so. Moody’s Friday night downgrade of the US completes the trio of ratings agencies, but it does feel like a stable door, horse bolted moment given how little new information the news provides. Early trading on Wall Street suggests that it hasn’t deterred the headlong rush back into US equities, which continue to defy the doubters with their post-April rebound.
Pound rises against the dollar
Given the Moody’s news and the EU-UK deal it’s hard to disentangle dollar weakness and sterling strength today. The deal should help to smooth the way to better economic ties, businesses preferring better access even if the UK has had to make significant concessions. It is yet another signal of how Trump’s abrasive approach continues to upend the global order.
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