Markets React to Moody's US Credit Downgrade

The dollar edged lower along with US equity-index futures after Moody's Ratings stripped the US government of its top credit rating, citing a ballooning budget deficit it said showed little sign of narrowing. US stock futures declined 0.7% after the ratings were slashed one level to Aa1 from Aaa Friday. A gauge of the dollar weakened 0.3% and Treasuries were little changed at the open Monday. Shares in Japan, Australia and South Korea were weaker at the open. We get reaction from Larry Tentarelli, Chief Technical Strategist at Blue Chip Daily Trend Report. Plus -  holding longer-term Treasuries and importing Japanese cars manufactured in the US are among the possible bargaining chips for Tokyo in its talks with Washington over President Donald Trump's sweeping tariffs, according to the leader of a small but influential opposition party. Yuichiro Tamaki, head of the Democratic Party for the People, said in an interview last week that Japan could offer to reinvest proceeds from maturing US Treasury holdings into super-long bonds in return for concessions on tariffs. Those comments come ahead of the G7 Finance Ministers meeting in Canada this week. We get more on Japan's outlook from Tobias Harris, Founder and Principal at Japan Foresight. He speaks with Bloomberg's Yvonne Man and Avril Hong.See omnystudio.com/listener for privacy information.