US downgrade spooks markets

Rating agency Standard Poor’s ruined countless summer holidays on Friday when it downgraded America’s credit rating for the first time, citing weakened policymaking as a contributor to the move to AA.

The announcement’s timing allowed the news to sink in during the weekend, but Asian markets will be at the forefront today as investors react to America’s downgrade from triple-A. In Hong Kong, stocks had started to recover by the end of last week after a three-day losing streak, but are expected to head back down again today amid turbulent trading conditions.

Markets across the Middle East have already felt the effects, with Saudi Arabia’s Tadawul...