Market commentary

For months economists, analysts, investors and the markets were focused on the mounting sovereign debt fears in Europe. Today, however, the beginnings of those tremblings came to U.S. shores as Standard & Poors put a “negative” outlook on the AAA rating U.S. debt currently enjoys. In the words of S&P: “We believe there is a material risk that U.S. policy makers might not reach an agreement on how to address medium and long-term budgetary challenges by 2013. “If an agreement is not reached and meaningful implementation does not begin by then, this would in our view render the U.S. fiscal profile meaningfully weaker than that of peer ‘AAA’ sovereigns.” U.S. stock and bond markets sold off on the S&P announcement with the DOW trading lower by 200 points. The U.S. Treasury market relinquished its early morning gains and continues to trade lower. The economic calendar is light this week and it is a short week as the markets are closed for Good Friday.