Fitch downgraded Italy, Spain, Belgium, Cyprus, and Slovenia about an hour ago.
But markets just don’t seem to care.
There may have been a slight sell-off right after the announcement, but since then markets have actually bounced back a little bit. This is still shaping up to be a negative day for stocks, but we certainly haven’t seen the kind of dramatic market reaction we did to even a rumour of a downgrade just a few months ago.
Despite the lack of strong market movement, it would seem that investors have priced in some kind of downgrade from Fitch, particularly after Standard & Poor’s downgraded nine eurozone countries on January 13.
Check out the Dow today: