U.S. Markets Take it on the Chin Over Strong Dollar and Debt Worries

“Doubts about Europe’s ability to manage its debt hammered global markets Monday, pushing the dollar up sharply and dragging down commodities and stocks.

Following a three-notch cut of Greek debt by Fitch Ratings Friday, which pushed the country’s rating deeper into junk status, rivalStandard & Poor’s revised its outlook for Italy to “negative” from “stable” on Saturday.

Fitch also warned Monday it may downgrade Belgium’s credit ratings if the government misses its deficit targets due to lack of political consensus on a balanced budget.

Fitch’s warning comes less than six months after a similar action by Standard & Poor’s, which also revised to “negative” the outlook on Belgium’s ratings. Both agencies rate the country’s debt at AA-plus, the second-highest rating on their scale.”

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