S&P threat to US triple-A rating drags on markets

Markets look set for another day of falls as investors fear sovereign debt problems in the US and eurozone could prompt another global crisis.

The FTSE 100, which lost 1.1% yesterday to close at 5847 points, fell a further 0.4% this morning to 5823. Yesterday credit ratings agency Standard & Poor's announced it may cut the US' triple-A status, just a day after Moody's said it was also reviewing its rating of US debt. The US has until 2 August to raise its debt ceiling but cross-party talks have failed to agree on the issue. The US's public debt has surged from $10.6trn (£6.5trn) in January 2009 to $14.3trn at the end of May 2011, the BBC reports. Earlier in the week eurozone contagion fears intensified as it became appare...