Market talk of a German sovereign downgrade - Unconfirmed

'Market talk' - Signifies information that has not been formally tested through traditional journalistic channels and therefore is to be treated as unsubstantiated. Any interpretation of the talk is taken at the readers own risk and is a representation of the rumours within the market place and never generated by ourselves.

Reaction details (15:16)

- No immediate reaction seen across any asset classes following this rumour. However, equities markets have come under pressure in recent trade which could have prompted the rumour to fit the move.

Analysis details (15:24)

- Having checked with contacts they are not giving this talk much credence but the rumour has picked up pace on Twitter.
- Kind in mind there were several rumours regarding France lately which did result in a downgrade of their sovereign rating so it maybe worth remaining vigilant is any move on Germany is seen.
- Note, historically rating agency action tends to come after the European cash equity close (after 1630BST).
- As a guide, Germany is currently rated at 'Aaa'; outlook negative at Moody's and 'AAA'; outlook stable at both S&P & Fitch
**UPDATE** - There is chatter doing the rounds that the downgrade will come from smaller rating agency Egan Jones.

24 Jul 2013 - 15:03- EquitiesEconomic Commentary- Source: RANsquawk

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