London Stocks Set to Open Lower Amid US Credit Rating Downgrade
This week’s trading in London’s stock market is expected to begin on a weak note, due to Moody’s downgrading the country’s credit rating. The decrease in credit rating has caused many to hesitate in markets and search for safety in their assets. The IG suggests that the FTSE 100 index will start Monday 0.3% lower than the previous closing at 8,656.26. On Friday, the index closed with a rise of 0.6%, to 8,684.56 points or 50.81 points higher than the previous close. Currency and Commodity Moves Major changes in the foreign exchange market were seen to begin the week. On Monday, the pound moved up to $1.3298 from $1.3260 where it was when London markets closed on Friday. In a similar manner, the euro rose, going from $1.1146 to $1.1182. Against the yen, the US dollar was down, with a rate of JPY145.21 (compared to JPY145.97 previously). The decline in the dollar led to changes in commodity prices. The investment community pushed gold higher to $3,219.70 an ounce, just slightly abov...