Stock futures tumbled to start the week and are on track for their lowest close for the month of November, as the apparent failure of U.S. deficit cutting talks ignited a sell-off across the board in the commodity sector. The so called U.S. super-committee, charged with reducing the budget deficit by at least $1.2 trillion over the next ten years, or otherwise triggering automatic spending cuts was almost facing certain collapse, barring an unlikely last minute deal. Investors already concerned with the ongoing uncertainty from the European Union, now have to deal with more possible downgrades here in the U.S.
Investors remember the selloff this past August when Standard& Poor's downgraded the U.S. credit rating that sent global stock indexes spiraling lower. Those fears were echoed today, as all three benchmark Indexes fell over two percent, as traders liquidated positions ahead of the Thanksgiving holiday.
European markets also fell today as the Stoxx Europe 600 lost over three percent today. Moody's Investor Service said it may change its stable outlook on France's triple A rating to negative in the coming months, and that German banks have sizable exposures to euro-zone countries. The election of a fiscally conservative government in Spain failed to calm euro-zone bond Markets, as Spanish borrowing costs climbed close to their highest levels Since the onset of Europe's sovereign debt crisis.
Economic Releases 11/22
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