European Market Updates
European Stocks May See Cautious Start: "European Stocks May See Cautious Start
5/31/2010 2:25 AM ET
TOP MARKET NEWS
Apple Sells More Than Two Mln IPads In 59 Days - Update
Euro Mixed Against Majors
Emerging Countries Strengthen World Economy, Central Bankers Say
Canadian Dollar Eases Against Most Majors
Gold Fields Chairman Alan Wright To Retire; Names Mamphela Ramphele Successor - Update
(RTTNews) - European stocks may open on a flat to slightly subdued note Monday, weighed by a negative close on Wall Street Friday after the downgrade of Spain's credit rating. That said, sentiment could be aided by higher U.S stock futures, rising oil prices and gains in Asia Monday.
The major U.S averages lost around a percent each on Friday after ratings agency Fitch downgraded Spain's credit rating. However, the Dow futures are now rising by 46 points. The U.S. markets will remain shut today for the 'Memorial Day' Holiday. The U.K market is also closed for the Spring Bank holiday.
After settling down 0.8% at $73.97 a barrel on Friday, light, sweet crude futures for July delivery are now trading firm above $74 a barrel in Asian trading.
Fitch Ratings downgraded Spain's Long-term foreign and local currency Issuer Default Ratings to 'AA+' from 'AAA'. The rating outlooks on both long-term IDRs are Stable. This comes a few weeks after S&P downgraded Spain one notch to AA from AA+ and kept a negative outlook.
In other economic news, European Central Bank President Jean-Claude Trichet on Monday said emerging countries remain a source of strength for the world economy following the global financial downturn. 'One distinctive aspect of this crisis has been its originating in industrial economies,' he said via a video address to a Bank of Korea conference in Seoul.
'Emerging economies have also been severely affected, but as a group remained a source of strength for the world economy. It is therefore not surprising that the crisis has led to even better recognition of their increased economic importance and need for full integration into global governance, ' he said.
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