Market Buzz: No slack from Europe
Overnight Moody's rating agency cut the ratings of 28 Spanish banks following a June 13 downgrade of Spain's sovereign rating by three notches.
U.S. stocks tanked Monday amid growing concerns about the outcome of a meeting of European Union leaders this week. The Dow Jones fell 1.1%, the S&P 500 lost 1.6% and the Nasdaq Composite dropped 2%.
Russian stocks closed in the red Monday amid renewed worries about the deteriorating situation in the euro zone. The MICEX dropped 1.26% and the RTS declined 1.6%.
European stocks fell Monday as investors’ optimism about the European Union summit began to fade amid fear EU officials won’t be able to curb the euro crisis. The Stoxx Europe 600 index fell 1.5%, while the French CAC 40 dropped 2.2% and Germany’s DAX 30 shed 2.09%. The Spanish IBEX gave up 3.67% after the country’s government asked for a bailout.
Most Asian markets declined Tuesday, as Moody’s downgrade of Spanish banks and a request for a bailout from Cyprus prompted fresh concerns about Europe. Japan’s Nikkei Stock Average fell 0.9%, while South Korea’s Kospi slipped 0.2%. Australia’s S&P/ASX 200 index fell 0.6. In China, the Shanghai Composite lost 0.5%, although Hong Kong’s Hang Seng traded flat.