Monday is the first day of trading on the American exchanges since the United States lost its triple A credit rating. Traders are prepared for anything to happen including a market crash.
U.S. futures markets are indicating steep drops based on large scale global selling as international markets reacted strongly to S&P’s downgrade.
Gold hit an all time high of $1,718.20 while oil futures dropped sharply.
The Swiss Franc and the Yen, considered to be the strongest currencies, went up almost 1% against the Dollar.
The European DAX and FTSE fell by 2.3% and 1.6%.
Asian markets fell: Hang Seng dropped by 2.2% and the Japanese Nikkei was at 225.
Middle Eastern stock markets fell on Sunday and the Israeli Benchmark Tel Aviv-25 index dropped by 7% which was its biggest fall since October 2000.
In addition to the U.S. credit rating downgrade, traders are monitoring the unstable European economic situation. Italian and Spanish bond interest rates dropped sharply when the ECB issued a statement that it would buy bonds from Italy and Spain on condition that they would take serious debt reduction steps.
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