Markets Calm After European Credit Downgrades

 　　European markets reacted nonchalantly Monday after credit rating agency Standard & Poor's downgraded nine countries, including France and Austria, late Friday. The widely followed agency also reduced the ratings of Italy, Spain and Portugal, as well as Cyprus, Malta, Slovakia, and Slovenia.

　　Far from the sharp drop some had expected, Europe’s major market indexes stayed close to their Friday closing levels for much of the day, finally closing up slightly. The main stock price averages in Germany and Britain were both up - the German by more than one percent.  Even in France, which suffered the small downgrade from its top credit rating Friday, the market was up nearly a full percentage point.

　　Economist¹ Zsolt Darvas at the Bruegel Institute in Brussels said despite Friday’s big news from Standard & Poor’s, Monday’s market calm did not shock him.

　　“I think this is not that surprising. Basically, what happened is something that S&P initially² has initially indicated, it has been decided³. I think markets have anticipated,” said Darvas.

　　Darvas noted⁴ that bond markets also were relatively⁵ calm Monday, even though France and the other downgraded countries will have to pay higher interest rates on their bonds. France had no trouble selling 8.5 billion euros worth of short-term bonds. The French president noted his country still enjoys the highest rating from the two other major credit agencies.

　　Currency markets were somewhat more volatile⁶, with the euro losing a quarter of a percentage point against the dollar. But Darvis is not concerned, saying the euro’s value has been unjustifiably high in recent months.

　　“What happened in the past few days and during last week is that the euro became less over-valued than it was before. So I think that nothing wrong has happened to the euro so far,” said Darvas.

　　Although the credit downgrades did not have a big impact on the markets Monday, they do provide further warning signs for the economic state of Europe.

　　The credit crisis is spreading beyond over-indebted countries like Greece, Italy, Spain, Portugal and Ireland to more solid economies like France and Austria. Darvas said that means the situation European leaders were trying to avoid is now more likely.

　　“I think it is increasingly likely that the euro zone will face a recession this year. It will be very, very difficult to avoid it,” said Darvas.

　　Darvas and other experts say European leaders need to do more to support the troubled economies and promote economic growth - subjects that will be high on the agenda at the next European Union summit at the end of this month.

1 economist   

n.经济学家，经济专家，节俭的人

参考例句：

• He cast a professional economist's eyes on the problem.他以经济学行家的眼光审视这个问题。
• He's an economist who thinks he knows all the answers.他是个经济学家，自以为什么都懂。

2 initially   

adv.最初，开始

参考例句：

• The ban was initially opposed by the US.这一禁令首先遭到美国的反对。
• Feathers initially developed from insect scales.羽毛最初由昆虫的翅瓣演化而来。

3 decided   

adj.决定了的，坚决的；明显的，明确的

参考例句：

• This gave them a decided advantage over their opponents.这使他们比对手具有明显的优势。
• There is a decided difference between British and Chinese way of greeting.英国人和中国人打招呼的方式有很明显的区别。

4 noted   

adj.著名的，知名的

参考例句：

• The local hotel is noted for its good table.当地的那家酒店以餐食精美而著称。
• Jim is noted for arriving late for work.吉姆上班迟到出了名。

5 relatively   

adv.比较...地，相对地

参考例句：

• The rabbit is a relatively recent introduction in Australia.兔子是相对较新引入澳大利亚的物种。
• The operation was relatively painless.手术相对来说不痛。

6 volatile   

adj.反复无常的，挥发性的，稍纵即逝的，脾气火爆的；n.挥发性物质

参考例句：

• With the markets being so volatile,investments are at great risk.由于市场那么变化不定，投资冒着很大的风险。
• His character was weak and volatile.他这个人意志薄弱，喜怒无常。