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FTSE 100 Live: Stocks called lower while Moody's warns on US credit rating

Published 26/09/2023, 07:00
© Reuters.  FTSE 100 Live: Stocks called lower while Moody's warns on US credit rating
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Proactive Investors - It could be another weak start in London on Tuesday despite a better trading session in New York.

Spread betting companies are calling the FTSE 100 down by around 11 points after closing down 59.92 points at 7,623.99 on Monday.

US stocks broke a four-day losing streak to close higher as investors sought value after recent falls.

However, Moody’s warned that a US government shutdown would threaten the country’s triple A credit rating.

The warning came amid a stand-off in Congress that risks leaving the federal government without funding.

Moody’s, the last major rating agency yet to have downgraded the US’s debt, said a shutdown would be “credit negative for the US sovereign”.

Ipek Ozkardeskaya at Swissquote Bank noted: “ US yields rose, and the dollar extended gains yesterday as the looming US government shutdown drama got the only remaining big rating agency company Moody’s to sound cautious about the US’ AAA rating.”

In Asia, stocks fell further with jitters over the healthy of the Chinese property sector still on investor’s minds after Evergrande announced on Monday that it was unable to issue new debt as its subsidiary was "being investigated".

Back in London, and on a bumper day of company results updates from Asos, Close Brothers, PZ Cussons (LON:PZC) and Smiths Group (LON:SMIN) may get investor’s pulses racing as we start the day.

Read more on Proactive Investors UK

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