OptionsDesk broker Alex Mitchell speaks to Thomas Warner from Proactive at the end of a week dominated by an unexpected downgrade in the US government's credit rating by rating agency Fitch. Fitch, one of three major independent agencies that assess creditworthiness, cut the rating from the top level of AAA to AA+, causing several percentage-point falls in most of the major US and UK stock markets.
Mitchell emphasises the importance of investors being prepared and protected against sudden market shifts. He also touches upon other stories including the 25 basis point hike in UK interest rates and some fresh earnings data from big American companies this week.
Mitchell says he expects more volatility in the coming weeks, reminding investors to consider protection strategies.