European Stocks Plunge South on Possible Downgrading Of Debt Ratings
Stocks of European markets fell on Tuesday, with the fall being led by stocks of banks. Banks in France faced pressure, due to a likely revision in rating of France, by several rating agencies. Opening figures of stocks on Tuesday showed Stoxx Europe 600 fell by 0.8%,, after an optimistic rise on Monday by 3.8%.
One of the reasons cited for the debacle in stocks, of European markets was the probability of a downgrading of France's sovereign rating from AAA to negative by Standard and Poor, though officials of the rating agency did not comment on the same. In the meantime Moody's Investors Service confirmed that it could downsize subordinated debt ratings on a few of the banks of European as a consequence of the financial constraints faced by many European countries.
Stocks of French banks like BNP Paribas SA, Societe General SA, and Credit Agricole SA took a hit with their share prices sliding inspite of gains on Monday.