The US equity markets have fallen quickly from their opening price in reaction to Standard & Poor’s’ decision to downgrade the country’s credit rating from AAA to AA+.
At 15.35, the Dow Jones was down by 2.57 per cent to stand at 11151.94. The S&P 500 has also fallen by almost 4 per cent, to stand at 1,151.88. The FTSE 100 has fallen further since US markets opened and was down nearly 3 per cent for the day, to 5092, at 3.50pm.
Shares across Europe have also sustained losses with the Dax down 3.96 per cent and the Cac 40 down by 3.27 per cent.
In the Far East markets reacted badly to news of America’s downgrade with Japan’s Nikkei 225 falling 2.18 per cent to 9098 by close while in China the Shanghei Composite index fell 3.77 per cent to 2527.