Moody's Warning on Europe Adds Pressure to Solar Stocks (FSLR) (YGE) (TSL)
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Solars are getting hit Tuesday as a new Moody's call is pressuring a key sales market.
Solar stocks have derived the lions share of sales from Europe in the past. Today' Moody's issued a warning to the European Union that it could lose its Aaa debt rating, while cutting its outlook on the EU's long-term debt from Stable to Negative. Moody's cited credit risks stemming from Germany, France, the Netherlands, and the U.K.
The warning might add pressure for the European Central Bank (ECB) to institute more stimulus measures with its upcoming meeting this week. Should the ECB put off even more stimulus measures, budgets for solar expansion may also come to a screeching halt.
In addition, data from Markit Economics is pressuring crude prices Tuesday. Markit's Purchasing Managers Index fell to 45.1, from 45.3 estimated earlier. The number compares with 44.0 in July and its at its 13th month below the key 50 expansion measure.
As crude prices drip lower, the need for alternative energy sources wanes even further.
Crude October contracts are down $1.07 to $95.40 per barrel on the Comex.
Lower on the session today include First Solar (Nasdaq: FSLR), SunPower (Nasdaq: SPWR), LDK Solar (NYSE: LDK), Yingli Green Energy (NYSE: YGE), and Canadian Solar (Nasdaq: CSIQ).
Solar stocks have derived the lions share of sales from Europe in the past. Today' Moody's issued a warning to the European Union that it could lose its Aaa debt rating, while cutting its outlook on the EU's long-term debt from Stable to Negative. Moody's cited credit risks stemming from Germany, France, the Netherlands, and the U.K.
The warning might add pressure for the European Central Bank (ECB) to institute more stimulus measures with its upcoming meeting this week. Should the ECB put off even more stimulus measures, budgets for solar expansion may also come to a screeching halt.
In addition, data from Markit Economics is pressuring crude prices Tuesday. Markit's Purchasing Managers Index fell to 45.1, from 45.3 estimated earlier. The number compares with 44.0 in July and its at its 13th month below the key 50 expansion measure.
As crude prices drip lower, the need for alternative energy sources wanes even further.
Crude October contracts are down $1.07 to $95.40 per barrel on the Comex.
Lower on the session today include First Solar (Nasdaq: FSLR), SunPower (Nasdaq: SPWR), LDK Solar (NYSE: LDK), Yingli Green Energy (NYSE: YGE), and Canadian Solar (Nasdaq: CSIQ).
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