Euro and USA Debt http://www.financial-spread-betting.com/spreadex/Spreadex-review.html Why are global budget deficits a threat for the securities markets? Simon Furlong, Sales Trader at Spreadex comments. Budget deficits naturally affect the equity markets in terms of higher interest rates. Higher interest rates traditionally put negative pressure on equity markets. Why did you invest your money in shares markets when you could have invested your money elsewhere for high yields so interest rates are notoriously bad for equity markets. Higher budget deficts also cause higher interest rates.
