Markets fall after Moody's and Fitch assess EU debt plan

The agreement at the European Union's debt summit last week does not seem to have impressed two of the ratings agencies. Reuters reports:

Moody's Investors Service said on Monday it intends to review the ratings of all 27 members of the European Union in the first quarter of 2012 after EU leaders offered "few new measures" to resolve the crisis in a summit on Friday.

Fitch Ratings said the summit, in which leaders agreed to draft a new treaty for deeper economic integration, failed to provide a "comprehensive" solution to the crisis, thus increasing short-term pressure on euro zone sovereign ratings.

Markets reacted negatively. The S&P 500 fell 1.5 percent on Monday while the STOXX Europe 600 fell 1.9 percent. The euro weakened while European bond yields rose.

Economic data on Monday had also been negative.

The OECD reported that its composite leading indicator fell 0.3 point to 100.1 in October.

Japan's Cabinet Office reported that its consumer confidence index fell 0.5 point to 38.1 in November, its first decline in seven months.

Elsewhere in Asia, India reported that its industrial production fell 5.1 percent in October from the previous year, a sharp reversal from the 1.9 percent increase in September and the first decline in output in more than two years.