The cut in the US debt rating has turned the stock markets red as the decision came by surprise. Late on Tuesday, Fitch stripped the world's largest economy of its AAA rating, the highest possible, to leave it at AA. He argues for it in the fiscal deficits expected for the next few years and in an "erosion in governance" in the last two decades that have led to several shocks for the debt ceiling, the most recent this 2023.
The rating had been on negative watch since May. The cut has angered Washington, which has described the cut as "arbitrary" and points out that it contrasts with "the greatest recovery of an economy on the planet" with the Biden Administration.
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The news has disrupted the trading day. At half a session, the Ibex 35 was among the most bearish stock markets with a decrease of 1.37%, similar to the fall in London. Frankfurt and Paris yielded somewhat less, around 1.1% -1.2%. The pan-European EuroStoxx 50 index was a true reflection of the picture with a decline of 1.3%.
US futures are also trading lower, hovering around 1% for the Nasdaq and around half a point for the Dow Jones. "The US cut could be the first and we could see other countries' ratings downgraded, as high debt is a common problem for many," said Alfonso Benito, investment director at Dunas Capital.
In Asia, with the markets already closed, the trend has been similar. Tokyo has yielded 2.3% and Hong Kong's Hang Seng 2.5%.
