Stock exchange news. Last Tuesday Moody’s Investors Service hardly hit the image of Spain and European Union, having lowered Spanish sovereign credit rating by two steps, from АА2 to А1. The motives included market nervousness, questionable perspectives of economic growth, and evident inability of the country to reach target values. It is also important that Moody’s rating agency does not exclude the possibility of further decline in future.
It is worth mentioning that not only Moody’s has lately started to lower the rating of the countries, which are members of European Union. This is connected with the unsolved issue of EU credit crisis. Let us remind that due to similar issues что совсем недавно ввиду тех же кредитных проблем были the credit ratings of such EU members as Belgium and Italy have also been lowered recently.
But let us return to Spain . Moody’s believes that the country is very weak in the condition of market troubles, as there is no safe decision to resist debt crisis. Снижение Financing bank sector is getting harder due to the decline, or even weak perspectives of growth of world economy in general and European economic in particular. This considerably weakens Spanish economic development. Highly restrained positive perspectives of the country have become even smaller. Thus, real GDP will rise by 2% in 2012, whereas the previously predicted growth amounted to 1.8%.
Analytics of Department of Derivatives Trading believe that if Spanish possible economic growth declines, it will be extremely hard for the country to reach the ambitious tax and budget targets. Moreover, European Union keeps casting doubt on the possibility to prevent the second wave of recession. This has immediately influenced the price of oil grade Light Sweet Crude Oil Futures, which, due to the controversial news, cannot turn the current level of resistance at the point 90.00 dollars per barrel into a fair level of support in order to continue its growth to 95.00 dollars per barrel. Currently, descending trend prevails.
