Global Markets Update: US stocks fall on rising concerns about debt limit

Another round of debt ceiling talks between White House officials and congressional Republicans ended 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 closed down 1.1% at 4,145.58. The Dow Jones Industrial Average closed down 0.7% at 33,055.51. The tech-rich Nasdaq Composite Index fell 1.3% to 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’s stock dropped 1.5%.

The yield on the 10-year Treasury fell to 3.70% from 3.72% late Monday. The 2-year Treasury yield rose to 4.34% from 4.32%.

The minutes of the Federal Reserve’s May 2-3 meeting are due on Wednesday.

Currencies

The US dollar fell from 138.56 to 138.48 JPY. The euro fell from $1.0819 to $1.0776.

Canada

Canadian stocks declined on Tuesday on losses in technology and industrial stocks.

The Toronto Stock Exchange’s S&P/TSX composite index was 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 down 0.6%.

The STOXX Europe Luxury 10 declined 4.3%, its biggest one-day decline since mid-December.

LVMH fell 5%, peers Hermes and Kering fell 6.5% and 3.0% respectively.

Britain’s FTSE 100 fell 0.1% to close at 7,762.95. Germany’s DAX closed down 0.4% at 16,152.86. France’s CAC 40 closed down 1.3% at 7,378.71.

Asia

Asian stock markets declined on Tuesday.

Hong Kong’s Hang Seng index closed down 1.3% at 19,431.25. China’s Shanghai Composite fell 1.5% to close at 3,246.24.

Japan’s Nikkei 225 closed down 0.4% at 30,957.77.

Australia’s S&P/ASX 200 index closed down 0.05% at 7,259.9. New Zealand’s benchmark S&P/NZX 50 index fell 0.4% to 11,944.2.

energy prices

Brent crude for July delivery rose 85 cents to $76.84 a barrel on Tuesday. The benchmark US crude 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 delivery in June fell $ 2.70 to $ 1,974.50 an ounce. Silver for delivery in July declined 24 cents to $23.62 an ounce.