Posts Tagged ‘U.S. Treasury’

KUWAIT CITY, Aug 10: Previously what was thought unthinkable happened. On 5 August 11 evening, Standard & Poor’s lowered the U.S. long-term rating by one level to AA+, while keeping the outlook at “negative” as the agency becomes less confident that Congress will end Bush-era tax cuts or tackle entitlements. S&P also said the U.S. rating may be reduced to AA within two years if spending reductions are lower than agreed to, interest rates rise or “new fiscal pressures” result in higher general government debt.

GCC & World Indices – Day 1 Impact
All the GCC indices retreated as the markets opened after their respective weekend. While TASI had a 5.5% fall on Saturday, a similar story was repeated for other GCC indices on Sunday when they opened with DFMGI falling by 3.7%, ADSMI and DSM falling by 2.5% each, Oman 1.9%, Kuwait 1.6% and Bahrain 0.3%. Ditto was the case with Asia, Europe and US markets when they opened on Monday.

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