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Thanks for joining me. European markets are expected to decline when they open after ratings agency Fitch downgraded the US’s top level credit score.
US Treasury Secretary Janet Yellen called the decision “arbitrary and based on outdated data”.
It comes two months after the US nearly defaulted on its debts after a standoff between the White House and Congress over the US debt ceiling.
5 things to start your day
1) We won’t invest in green energy for the sake of it, says BP boss | Investment needed in both fossil fuels and renewable power, warns Bernard Looney
2) United States’ credit rating downgraded after debt ceiling stand-off | The world’s largest economy loses triple A credit rating
3) Saudi Arabia’s borrowing costs hit record high | Rapid US interest rate rises put ‘mirror city’ and other extravagant projects at risk
4) Britain heading for an industrial recession, bosses warn, as interest rates rise | Higher borrowing costs are sending the manufacturing sector into a tailspin
5) Electric cars will cost more to make, BMW warns | Carmaker also expects rising inflation and supply chain expenses to hit finances
What happened overnight
Asia stocks fell as the Fitch Ratings downgrade of the US sovereign rating soured risk sentiment following a strong recent run, while further support measures from China failed to reverse the mood.
An Asia Pacific equity gauge headed for the biggest decline in almost a month. Equities in Hong Kong and mainland China extended losses, while Japanese stocks dropped as a stronger yen dented the outlook for corporate profit.
Wall Street’s rally reached an end on Tuesday after stocks mainly closed lower on Tuesday, as traders processed a mixed collection of corporate earnings and economic figures.
The S&P 500 tumbled from its 16-month high and finished down 0.3pc at 4,576.73, coming off its fifth straight winning month. The Nasdaq Composite sank 0.4pc to 14,283.91, while the Dow Jones Industrial Average rose 0.2pc to 35,630.68.
In the bond market, the benchmark yield on the 10-year Treasury rose to 4.03pc from 3.97pc late Monday.
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