Traders have been bracing for sovereign rating cuts in Europe ever since Standard & Poor's issued a warning. Here's what to do.
Credit-rating cuts are never good for countries, but when the real stalwarts get hit, it hurts more. That's why investors are bracing themselves after Standard & Poor's warned that Germany and France could face downgrades.
"We've been waiting all week to see if S&P downgrades," says Andrew Busch, global currency and public policy strategist for BMO Capital. "They specifically said Germany and France, and I think that's what caught everybody by surprise."