Markets shocked by S&P outlook on U.S. debt

Markets are being battered today after Standard & Poor’s revised its long-term outlook on the U.S. debt from stable to negative and called into question its triple - A rating unless the government took action to tackle both its national debt and budget deficit.  The FTSE 100 is down 120 points at 5,847 and the Dow Jones Industrials are down 195 points to 12,150. Oil is down $2 to $121 (Brent Crude) and gold moved up $2 to $1488, another all time high. Finally the U.S. government may take notice that its days of a ballooning budget deficit must be reined in. 

The FTSE wall also hurt by news that Moody's has downgraded all the country's government assisted banks to Junk status.

Most of my portfolio stocks are deeply in the red but fortunately my trimming back of positions last week has helped ease the losses. Desire Petroleum's failure at Ninky has driven the stock down 60% to 15.75p and taken Rockhopper with it by 6% to 234p. Other oil stocks in the portfolio have taken a jolt down with Xcite Energy down 2.9.% to 341p and Encore oil down 3.9% to 311p. Condor Resources is the only portfolio share up after some positive comments at the Master Investor Show over the weekend.