Eric Platt And Mamta Badkar ~ Business Insider ~ Stocks Collapse: Here’s What You Need To Know ~ 21 June 2012
Eric Platt And Mamta Badkar – Business Insider
Markets plunged ahead of Moody’s expected downgrade of the banking sector.
But first, the scoreboard:
Dow: 12,573.57, -250.8, -1.96%
Nasdaq: 2,859.09, -71.3, -2.44%
S&P 500: 1,325.51, -30.1, -2.23%
Here’s what you need to know.
Before 8:00 a.m., Sky News reported rumors that Moody’s would initiate downgrades of the U.K. banking sector. The report slowly gained its teeth. First Barclay’s was identified as a potential candidate. Minutes later RBS, Lloyd’s, and HSBC had their names thrown in.
U.S. markets opened flat after weak initial jobless claims and flash PMI report. Initial claims fell by 2,000 week-on-week to 387,000. However, that was above expectations for a 383,000 read and last week’s figures were revised higher to 389,000. The U.S. flash PMI report also disappointed, falling 110 basis points to 52.9, an 11-month low.