The ASX 200 has fallen on Monday after a leading credit ratings agency downgraded the United States over concerns about government debt.
The index’s drop follows eight days of rises as it approaches its February high where it topped 8,500 points.
It was down about 0.4 per cent in the first 20 minutes of trading with Bega Cheese slumping 2.3 per cent, Boss Energy falling 2.2 per cent and BHP down 1.1 per cent.
Despite the slump, Life360 was up 3.2 per cent, aluminium producer Alcoa Corporation rose 3.2 per cent and Bellevue Gold has jumped 2.9 per cent.
The ASX 200’s slide follows Moody’s downgrading the US from its AAA credit rating to AA1, as high government debt and interest costs weigh down the economic superpower.
“While we recognise the US’ significant economic and financial strengths, we believe these no longer fully counterbalance the decline in fiscal metrics,” Moody’s said in a statement.
The move, made after trading had closed in the US on Friday, had no impact on the major indexes with the Nasdaq Composite rising 0.5 per cent, the S&P 500 up 0.7 per cent and the Dow Jones jumping 0.8 per cent.
However, US futures for the three indexes are each pointing down about half a per cent.
In Europe, London’s FTSE 250 Index rose 0.6 per cent while Germany’s DAX and the EURO STOXX 50 Index both jumped 0.3 per cent on Friday.
New Zealand’s NZX 50 Index is down 0.8 per cent since trading opened on Monday.
