MARKETS

In case you haven't noticed - and, in lieu of the press generated by the recent battle royal over how much to increase the U.S. national debt, most of you probably haven't - Europe is on the brink of financial collapse. But before you shed too many tears for the Mother Continent, save a few for America because at the pace we're going, we're next.

Late on Friday night US time, ratings agency Standard and Poor´s downgraded the long-term credit rating of the United States from AAA to AA+.

After a tumultuous end to last week the Aussie opens on Monday at 1.0400 as investors continue to digest news of the United States downgrade by S & P on Saturday morning local time from AAA to AA+.

Standard & Poor's took the unprecedented step of downgrading the U.S. government's "AAA" sovereign credit rating Friday in a move that could send shock waves through global financial markets and potentially undermine world economic growth. In a press release, S&P, cut its top-notch long-term credit rating for the U.S. Treasury's debt to AA+ with a negative outlook.

Perhaps all those doomers and gloomers in Australia moaning about how tough times are here, will lift their blinkers and have a quick look at Australia's AAA credit rating and compare that to the US after Standard & Poor's cut on Saturday, our time.

So the biggest questions about the impact of the S&P downgrade of America's credit rating are: the impact on the share market here and offshore today and tonight, and how many dominoes will fall as the rating cut impacts on the emerging crisis of confidence.

AFTERNOON REPORT- CLOSING (4.30pm AEST)The Australian share market fell to a two year low today, as global markets were heavily sold off on fears of a renewed global economic slowdown. US markets posted their biggest one day decline in two and a half years overnight while the local market had its worst one day fall since January 2009. The All Ordinaries Index (XAO) shed 183.2pts or 4.2pct to 4169.7. The All Ords closed at a level of 4097 on the 24th July 2009.

AFTERNOON REPORT (12pm AEST)The Australian share market has fallen to its lowest level since July 2009 in early trade. Overnight European share markets slumped to 11 month lows on continued worries about European sovereign debt, while US stocks recorded their biggest one day decline in two and a half years. At lunchtime in the East, the All Ordinaries Index (XAO) is down 187.8pts or 4.3pct to 4165.1.

The market had been looking for an interim profit of just over $US8 billion for the six months to June from Rio Tinto.

The Dow fell 500 points, with a whack of that happening in the final minutes to make it the worst day since the dark times of late 2008 after Lehman Brothers collapsed.

By Rudi Filapek-Vandyck, Editor FNArenaI joined Twitter. Not because I am curious what this celebrity has to say about her kids, or to read that another one is waiting for a connecting flight, impatiently.

The Aussie saw an extreme move lower overnight as markets sold out of risk instruments. We could see a small bounce from 1.0400 which is an absolutely crucial level for the Aussie dollar, but traders will continue to focus on the downside. A break of 1.0400 could set up a medium-term move to below 0.9800.

By Greg PeelThe Dow fell 512 points or 4.3% while the S&P fell 4.8% to 1200 and the Nasdaq fell 5.1%.All talk in the market yesterday morning was as to whether activity on Wall Street on Tuesday night and Wednesday night had signalled a capitulation bottom.

The AUD is significantly lower this morning as risk aversion trading takes centre stage.

- Norfolk reiterate earnings guidance at AGM- Update highlights the resilience of group earnings- Moelis sees value, retains a Buy ratingBy Chris ShawNorfolk Group ((NFK)) provides integrated electrical, communications, heating and air conditioning and fire protection services, management concentrat...

US jobless claims (new claims for unemployment insurance) fell by 1,000 to 400,000 in the latest week. Economists had tipped a reading around 405,000. The four-week average has fallen to the lowest levels in over four months.

The Australian dollar has sunk to 5 week lows as risk aversion grappled the markets on Thursday, extending its weekly loss to 5.3%. In a day where there was no other movement than to the downside, the local session saw a move from 1.0770 to 1.0650 and close to another 2 cents were erased over the course of the evening.

U.S. stocks plunged in the biggest selloff since the financial crisis, driving the Dow Jones Industrial Average down more than 500 points, as investors appeared to lose faith in the ability of the world's policy makers to revive the global economy and stave off a rolling debt crisis in Europe

By Greg PeelThe Dow closed up 29 points or 0.3% while the S&P gained 0.5% to 1260 and the Nasdaq jumped 0.

As a keen observer of social and regulatory change, it has not escaped me or many of our readers that a revolution is occurring in the ways that business is being conducted. New usages of the internet, social media and smartphone technology are the impetus for a huge structural shift in the economy.

Retail sales fell unexpectedly in June as consumers continued to watch every dollar amid jittery global economic conditions and worries about higher interest rates.

Investors worldwide sold shares amid yesterday and overnight amid growing concerns that global economic growth has stalled as well as a surge in new tensions in the eurozone.

By Greg PeelRetail sales fell by 0.1% in June to be up 1.4% annually on a nominal basis. On a trend basis, sales are up 0.

The Australian Dollar has opened trading around the 1.0750 level after trading lower in the overnight session.

Blue-chip stocks reversed a steep morning drop to snap an eight-day losing streak. In a volatile session, the Dow Jones Industrial Average squeezed out a gain of 29.82 points, or 0.25%, to finish at 11896.44.

The US ADP survey of private payrolls showed that employers added 114,000 jobs in July, above forecasts for a 100,000 gain. The ISM services index eased from 53.3 to 52.7 in July, below expectations for a result near 53.6.

Come and say 'Hello' to Your Editor in the weeks aheadFNArena Editor Rudi Filapek-Vandyck will be presenting at the upcoming Trading and Investing Expo in Sydney, and you are all invited to attend and say 'Hello' and have a chat after scheduled presentations on Friday and Saturda...

- Australian house prices are among the most unaffordable in the world- the problem is nation-wide and not restricted to cities- AMP sees little relief in sightBy Greg PeelThe rule of thumb is that house prices cross over into "unaffordable" territory when the median house price exceeds five times t...

So there's an agreement on the US debt ceiling and spending cuts? Well, yes, but not until the Senate and the US House of Representatives approves it.