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Global shares, euro steady after S&P but outlook weak

– European shares and the euro recovered from early losses on Monday in the wake of a mass downgrade of euro zone sovereign ratings, but trading was choppy with U.S. markets closed and the outlook for Greek debt talks uncertain.

Standard & Poor’s stripped France and Austria of their triple-A ratings and cut Italy to the same level as Ireland on Friday, shortly after news emerged that Athens’ talks on a bond swap with private creditors, seen as vital to avoid a default in March, had broken down.

Ratings agency Moody’s also weighed in on Monday saying its Aaa rating for France might come under pressure if the public debt keeps rising or if Europe’s debt crisis worsens.

All of that piles pressure on the euro zone’s leaders to shore up defenses, with some glimmers of optimism in the crisis now firmly doused.

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Tags: Outlook, Sp Outlook