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Threat to European ratings deflates a stock rally
REPORTS that all countries using the euro could get their credit ratings downgraded deflated a morning rally in the stock market yesterday. The Dow Jones industrial average closed up 78 points, giving back much of a 167-point gain from earlier.
News reports in the afternoon said Standard & Poor’s would put all nations that use the euro on “creditwatch negative,” meaning there is a 50-50 chance of a downgrade in the coming months. S&P had warned of possible rating demotions for many of the countries. The inclusion on the list of Germany, Europe’s strong
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