Among the reports about downgrades, French daily Les Echos reported that S&P will cut the credit ratings of Italy, Spain and Portugal by two notches and downgrade France and Austria by one notch. S&P wouldn't make any changes to ratings for Germany, the Netherlands, Finland and Luxembourg its adjustment of euro zone sovereign ratings, the newspaper said. The announcement is expected around 4 p.m.
S&P declined to comment.
"If Germany is downgraded, then that would be a game changer, but the countries that are being talked about were pretty much expected," said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.