Another late-day slide in US equities. A Moody’s warning that state and local governments could be downgraded if the US government rating is cut could the the latest catalyst. As we have seen in Greece and elsewhere, once the sovereign rating is cut, everything else gets cut along with it like banks, insurance companies and municipalities.
EUR/USD is little moved, at 1.4307 but AUD and CAD are sliding on a general reduction in risk.
