FRANCE: Markets shrug off Spanish debt downgrade as pressure comes off euro

Record ID: 1526598

  • Title: FRANCE: Markets shrug off Spanish debt downgrade as pressure comes off euro
  • Date: 1st June 2010
  • Summary: PARIS, FRANCE (MAY 31, 2010) (REUTERS) VARIOUS OF TRADING ROOM OF MONTSEGUR FINANCE, A PARIS ASSET MANAGER FRANCOIS CHAULET, DIRECTOR, LOOKING AT SCREENS CLOSE OF SCREEN (SOUNDBITE) (French) FRANCOIS CHAULET, DIRECTOR, SAYING: "It's a non-event. Spain was already downgraded by the other main credit rating agency. There wasn't any major surprise in this announcement especially as the outlook was negative and the fact that it's come down doesn't really cause any major problems for investors." VARIOUS SCREENS (SOUNDBITE) (French) FRANCOIS CHAULET, DIRECTOR, SAYING: "The market became oversold. We had a number of very weak sessions. Very strong and very rapid. The market was oversold. There was a bit of a technical rebound that took place from last Wednesday and Thursday, which allowed the market indices to pause a little. Today, this bounce appears to be running out of steam a little. We'll have to see where we go from here and it will be America that will give us the direction as to where valuations should go this week." VARIOUS SCREENS
  • Embargoed: 15th June 2010 22:42
  • Keywords:
  • Location: France
  • Country: France
  • Topics: International Relations,Finance
  • Reuters ID: LVA30C5RFEH2SORWEFHWM0PP8765
  • Aspect Ratio: 4:3
  • Story Text: European shares were flat at the opening of trading on Monday (May 31) and pressure came off the euro as markets shrugged off the downgrading of Spanish debt late on Friday (May 29) which had initially hammered Europe's single currency.
    "It's a non-event," said Francois Chaulet of Montsegur Finance, a Paris asset manager. "Spain was already downgraded by the other main credit rating agency. There wasn't any major surprise in this announcement especially as the outlook was negative and the fact that it's come down doesn't really cause any major problems for investors."
    By 0800 GMT, Paris shares were up around 0.3 percent, calming fears of a major market meltdown that were sparked by a selloff of euro-denominated assets late on Friday after the announcement.
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