There were credit rating downgrades for Europe again on Wednesday. This time, DBRS downgraded Spain to A (low) from A (high) and downgraded Italy one level to A. Ireland's rating was kept at A (low).
Europe's debt problems are compounded by weak economic growth and even financial safe haven Germany has not escaped the latter. A report on Wednesday showed that German exports fell 1.5 percent in June while imports fell 3.0 percent. Another report showed that industrial production fell 0.9 percent in June.
Meanwhile, there were mixed data on Japan's service sector on Wednesday. The Cabinet Office's economy watchers survey showed that the diffusion index for current conditions rose to 44.2 in July from 43.8 in June. However, the index for future conditions fell to 44.9 from 45.7.