European stocks fall, Moody’s slams summit outcome

week’s summit had failed to deliver “decisive policy measures” to fix the eurozone crisis.
In midday deals, London’s FTSE 100 index slid 0,46 percent to 5 503,66 points, Frankfurt’s DAX 30 dipped 1,41 percent to 5 901,22 points and the Paris CAC 40 lost 0,89 percent to 3 143,57.
The European single currency slipped to US$1,3259 from US$1,3384 late in New York on Friday. “European markets awoke to a generally negative bias to risk assets . . . with Moody’s criticising the actions of eurozone leaders last week to the ongoing debt crisis as providing no new solutions,” said Spreadex trader David White.
“Early trading today reflects this sentiment, as inflationary concerns are so far replaced with that of growth,” he added.
Asian markets were mixed on Monday as optimism over last week’s European plan to introduce tougher fiscal rules to save the eurozone were weighed by lingering concerns that leaders may not have done enough.
Traders remained nervous as Britain chose not to join the deal, while eyes will be on Standard & Poor’s, which last week warned the eurozone of a downgrade if it is unable to come up with a viable plan.
Moody’s, meanwhile, announced it would review ratings of all European Union nations early next year. “In view of the continued absence of decisive policy measures despite the recent euro area summit, Moody’s Investors Service is reiterating its intention to revisit the ratings of all EU sovereigns during the first quarter of 2012,” Moody’s said in a statement. It added: “The absence of measures to stabilise credit markets over the short term means that the euro area, and the wider EU, remain prone to further shocks and the cohesion of the euro area under continued threat.” – AFP.