Daily Times

Asian and European stock markets advanced Thursday, tracking a Wall Street rally in optimism over talks to avert a catastrophic US debt default. The dollar rose further, having already made solid gains the previous day as investors sought shelter in the haven unit. G7 leaders arrived in Hiroshima, Japan, for a key summit — but the debt drama has already forced US President Joe Biden to cancel planned stops in Papua New Guinea and Australia, sparking hopes of a breakthrough. Markets have been skittish in recent sessions with Republicans and Democrats unable to find common ground as the deadline for a deal to raise the country’s borrowing limit approaches. “The Washington mood music and President Biden’s decision to cut short his trip to the G7 meeting have given markets hope that a debt limit solution will be forthcoming, improving the market mood, with equities higher and bond volatility fading away,” noted Societe Generale analyst Kit Juckes. Talks this week between Biden, House Speaker Kevin McCarthy, and congressional leaders appear to have been fruitful. “I’m confident that we’ll get the agreement that we need on the budget and that America will not default,” Biden said at the White House just before he set off for the G7.