Markets have slipped into the red in early trading as Moody's negative outlook for the UK's AAA credit rating weighed on sentiment.
The UK's prestigious triple-A rating has been put on negative watch by the ratings agency, meaning there is a one in three chance it will be cut in the next 18 months. The loss of the rating would be a bitter blow for Chancellor George Osborne, who has maintained it is the coalition's efforts to tackle the country's debt which has kept the UK's financial reputation intact. However, this morning it spooked markets, with the FTSE 100 down 0.25% or 15 points, at 5,891, by 9am. Cyclical stocks paid the price in early trading, in particular resource stocks which relinquished some of the...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes