Global markets update: US stocks slump on rising worries over debt limit
US stocks slumped on Tuesday as worries grew over raising of debt limit.
Another round of debt ceiling talks between White House officials and Congressional Republicans ended withour a conclusion on Tuesday.
House Speaker Kevin McCarthy said, “We’re not there yet” on a deal to prevent the US government from running out of cash.
The S&P 500 slid 1.1% at 4,145.58. The Dow Jones Industrial Average fell 0.7% at 33,055.51. The tech-rich Nasdaq Composite Index dropped 1.3% at 12,560.25.
Broadcom advanced 1.2% after Apple announced a new multi-year multi-billion dollar agreement for Broadcom to develop new 5G radio components. Apple stock shed 1.5%.
The yield on 10-year treasury fell to 3.70% from 3.72% late Monday. The 2-year treasury yield inched up to 4.34% from 4.32%.
Minutes from the Federal Reserve’s May 2-3 meeting are due on Wednesday.
Currencies
The US dollar fell to 138.48 Japanese yen from 138.56. The euro fell to $1.0776 from $1.0819.
Canada
Canada shares declined on Tuesday on losses in technology and industrial stocks.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 205.05 points, or 1%, at 20,146.01.
Europe
European shares slipped on Tuesday, led by losses in luxury majors.
The pan-European STOXX 600 index closed 0.6% lower.
The STOXX Europe Luxury 10 tanked 4.3%, its steepest single-day fall since mid-December.
LVMH fell 5%, Peers Hermes and Kering dropped 6.5% and 3.0%, respectively.
Britain’s FTSE 100 fell 0.1% at 7,762.95. Germany’s DAX lost 0.4% at 16,152.86. France CAC 40 plunged 1.3% at 7,378.71.
Asia
Asian stock markets fell on Tuesday.
Hong Kong’s Hang Seng index dropped 1.3% at 19,431.25. China’s Shanghai Composite shed 1.5% at 3,246.24.
Japan’s Nikkei 225 fell 0.4% at 30,957.77.
Australia’s S&P/ASX 200 index closed 0.05% lower at 7,259.9. New Zealand’s benchmark S&P/NZX 50 index fell 0.4% at 11,944.2.
Energy prices
Brent crude for July delivery rose 85 cents to $76.84 a barrel on Tuesday. US crude oil benchmark for July delivery rose 86 cents to $72.91 a barrel.
Natural gas for June delivery fell 8 cents to $2.32 per 1,000 cubic feet.
Bullion
Gold for June delivery fell $2.70 to $1,974.50 an ounce. Silver for July delivery fell 24 cents to $23.62 an ounce.
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