Investors braced for another rocky day after Italy is downgraded

European stock markets are likely to open lower this morning and can expect a day of volatile trading after news that Italian debt was downgraded late last night by ratings agency Standard & Poor’s. It is not just European markets that are likely to be affected. Markets in the US are likely to open lower too and Asia has already closed lower, as fears grow about the level of European debt and the ability of governments to steer a safe course through the crisis. In the UK the FTSE 100 fell yesterday by just over 2%, principally because of continuing worries about ...

World markets enter new “danger zone”

Robert Zoellick, president of the World Bank, has warned that investors have lost confidence in the leadership of certain key countries and that world markets have entered a new “danger zone”. Mr Zoellick spoke at the Asia Society’s annual dinner in Sydney and said that the global economy was now going through a “multi-speed recovery” and that recent events had caused many to “lose confidence in economic leadership of some of the key countries". He continued: "I think those events, combined with some of the other fragilities in the nature of recovery, have pushed us into a new danger zone. I don't ...