U.S. Treasury yields eased back a touch as investors ironically sought the safety of U.S. sovereign debt, while the dollar also benefited, ticking up against a basket of major peers.
The reaction was a little more pronounced in equities, with S&P 500 and NASDAQ futures slipping around 0.5% each.
Japan’s Nikkei suffered a 1.8% drop, but that’s after hovering near post-Bubble highs for most of the past two months.
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Graphics are produced by Reuters.
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Chinese markets also took a big hit, led by a 2% drop for Hong Kong’s Hang Seng. But again, these are markets that had been supported by now-waning hopes for big-bang economic stimulus from Beijing.
China’s post-pandemic economic recovery is looking increasingly shaky, judging from the data, with factories and services activity adding to the gloom earlier in the week.
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/cloudfront-us-east-2.images.arcpublishing.com/reuters/3EW6JHOZ4ZNWVOZUN7RB3HFMSM.jpg "Markets shake off surprise US credit downgrade 40")
