S&P warning over eurozone bailout fund

It may be prudent to avoid investing too much personal wealth in the euro currency markets, after Standard & Poor's (S&P) warned it is considering downgrading the eurozone's bailout fund.

The threat of lowering the rating of the European Financial Stability Facility comes amid turbulent times for the euro, due to the high levels of public debt in countries including Greece and Portugal.

In some quarters, there are fears that the currency could soon be abandoned, with S&P considering downgrading most nations involved in the bloc if European leaders are unable to reach consensus on how best to deal with the crisis.

The knock-on effect of the news has been to see shares on the FTSE 100 halting their recent rally, and investment managers will want to monitor the situation closely.

The S&P warning has heaped extra pressure on the European plan for recovery and the creation of a new 'fiscal union', which is being spearheaded by France and Germany. ADNFCR-2318-ID-801231656-ADNFCR