Sovereign debt crisis in the Eurozone remained the main reason triggering the selloff in financial markets. Standard & Poor’s downgraded Italy’s credit rating with a negative outlook and the IMF warned that Greece must shrink its public sector and improve tax collection to avoid default. President Barack Obama’s tax plan was strongly rejected by Republicans but the market has shown little response to it so far. Investors’ sentiment was only slightly lifted in late US session after Greece affirmed that it was close to a deal to get the second tranches of funding.
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Risk Aversion on Lingering Eurozone Debt Crisis
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