• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Trending:
  • Kashmir
  • Elections
Sunday, June 15, 2025

Daily Times

Your right to know

  • HOME
  • Latest
  • Pakistan
    • Balochistan
    • Gilgit Baltistan
    • Khyber Pakhtunkhwa
    • Punjab
    • Sindh
  • World
  • Editorials & Opinions
    • Editorials
    • Op-Eds
    • Commentary / Insight
    • Perspectives
    • Cartoons
    • Letters to the Editor
    • Featured
    • Blogs
      • Pakistan
      • World
      • Ramblings
      • Lifestyle
      • Culture
      • Sports
  • Business
  • Sports
  • Arts, Culture & Books
  • Lifestyle
  • E-PAPER
    • Lahore
    • Islamabad
    • Karachi

Stocks sink over US debt ceiling concerns

Stock markets slipped on Wednesday as investors grow increasingly concerned about stalled US debt ceiling talks aimed at averting a painful default. Traders were also digesting inflation data in Britain and waiting for the release of minutes of the latest Federal Reserve policy meeting for clues about its interest rate plans.

Wall Street extended losses at the open while European equities were sharply lower in afternoon deals and Asian indices closed lower.

Optimism that flowed through trading floors at the start of the week has given way to trepidation, with several Republicans questioning a June deadline over the debt ceiling — and some saying the country is nowhere near running out of cash.

The stock market “is seeing the walls close in on the debt ceiling uncertainty”, said Briefing.com market analyst Patrick O’Hare.

President Joe Biden and House Speaker Kevin McCarthy have had a number of meetings to find a path to lifting the borrowing limit from the current $31.8 trillion.

Republicans have set cutting spending next year to 2022 levels as a “red line”, but Democrats have so far refused to commit to that.

Treasury Secretary Janet Yellen has said an agreement must be reached by June 1, otherwise the United States risks defaulting on its debt repayments, which most economists warn could spark turmoil in the global economy and markets.

“Even though there is a strong belief that the US politicians are not foolish to trigger a self-induced economic crisis and that they will reach a deal just before time, appetite in risk assets looks weakened,” said Ipek Ozkardeskaya, analyst at Swissquote Bank.

SPI Asset Management’s Stephen Innes said the debt limit debate “highlights the political polarisation that persists in the US, and casts a cloud over the political process in Washington”.

“The repeated brinkmanship could catch the eye of the rating agencies once again” after S&P downgraded the US credit rating during a similar standoff in 2011, he said.

He added that back then, “the underlying issue was the worsening political polarisation, and it’s hard to argue that the process has done anything other than continue to worsen since 2011.”

Inflation and central bank monetary policies also remained in the spotlight.

Falling US inflation and worries about the banking sector have fanned bets that the Federal Reserve would pause its rate-hike drive.

But recent data pointing to a still-strong US jobs market, as well as comments from top officials, have traders worried another increase is on its way.

In Britain, data showed inflation falling under double digits to its lowest level in more than a year, but it remained elevated at 8.7 percent as high food prices offset weaker energy costs.

Analysts said they expected the Bank of England to raise its key rate again as the BoE and the markets had expected consumer prices to fall further.

Elsewhere, oil prices won support from recent Saudi hints that output could be cut to lift prices.

Filed Under: Business

Submit a Comment




Primary Sidebar




Latest News

Iran sends secret messages to Israel through Cyprus amid rising tensions

Houthi leader calls for muslim unity against Israeli attacks on Iran

Pakistan emerges as vital air route as airlines reroute amid middle East airspace closures

Airspace tensions soar: Israel and Iran keep skies closed as Jordan reopens amid escalation

Gary Kirsten breaks silence: “I left because my role was undermined”

Pakistan

Pakistan emerges as vital air route as airlines reroute amid middle East airspace closures

India must reverse suspension of Indus Waters Treaty: Bilawal Bhutto warns of red line

Pakistan evacuates 450 pilgrims from Iran as regional tensions escalate

Rain, thunderstorms expected in Karachi as PMD issues early weather alert

Petrol, diesel prices likely to rise again as global oil costs surge

More Posts from this Category

Business

KP anti-corruption dept recovers record Rs4.91 billion in 2024–25

Govt targets Rs20bn from 18% GST on imported solar panels

CDWP approves 8 mega development projects, 1 forwarded to ECNEC

FBR makes first major ‘Benami Property’ seizure in Islamabad

SBP Faces a Tough Call: Hold or Cut? All eyes on June 16

More Posts from this Category

World

Iran sends secret messages to Israel through Cyprus amid rising tensions

Houthi leader calls for muslim unity against Israeli attacks on Iran

Airspace tensions soar: Israel and Iran keep skies closed as Jordan reopens amid escalation

More Posts from this Category




Footer

Home
Lead Stories
Latest News
Editor’s Picks

Culture
Life & Style
Featured
Videos

Editorials
OP-EDS
Commentary
Advertise

Cartoons
Letters
Blogs
Privacy Policy

Contact
Company’s Financials
Investor Information
Terms & Conditions

Facebook
Twitter
Instagram
Youtube

© 2025 Daily Times. All rights reserved.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OkPrivacy policy