Global stock markets tumble after Fitch downgrade; housebuilder Taylor Wimpey flags affordability concerns after sales slump
Here is our full story on Taylor Wimpey:
It’s turned into a market rout. The FTSE 100 has tumbled 130 points, or 1.7%, to 7,533 while the German, Italian and French markets have lost 1.5%.
There is a saying that when the US sneezes, the rest of the world catches a cold. That is certainly true with how the US government’s credit rating downgrade has troubled markets globally.
Ratings agency Fitch lowered the rating from the top level of AAA to AA+ amid concerns about the country’s finances and its debt burden. In effect, this is saying the US is now higher risk than previously thought. The news took markets by surprise, sending Asian and European indices down.
Brent Crude advanced 0.6% to $85.45 a barrel, meaning the commodity price has now risen by 18% since the end of June amid signs of tightening supply.
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