Sun, 28 Nov 2021

NEW YORK, New York - U.S. stocks recovered from earlier losses on Wednesday after Congress showed signed a deal would be done on raising the debt limit.

"There's definitely no question that there's unease and uncertainty that is finally weighing on investor sentiment and performance," Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky told Reuters earlier on Wednesday.

"Between the policy issues - the debt ceiling and the status of two large spending bills - to see the stocks sell off after such an extended run is not all that surprising."

The impasses between Republicans and Democrats have haunted markets in recent days.

However, it was not to be.

'The U.S. Senate postponed a vote to head off a federal debt default on Wednesday as Democrats considered a Republican proposal that could potentially defuse the partisan standoff that threatens the broader economy,' Reuters said in a mid-afternoon report.

'Democrats called off an early afternoon vote and planned a closed-door meeting after Senate's top Republican, Mitch McConnell, floated a plan that would buy more time to resolve the issue. McConnell proposed that his party would allow an extension of the federal debt ceiling into December.'

'Without congressional action to raise the $28.4 trillion debt limit, the Treasury Department has forecast that it will run out of ways to meet all its obligations by Oct. 18., the Reuters report said.

Wall Street reversed course on news of the development. The Dow Jones recovered to end ahead 102.32 points or 0.30 percent at 34,4`6.99.

The Nasdaq Composite gained 66.08 points or 0.47 percent to 14,501.91.

The Standard and Poor's 500 rose 12.83 points or 0.41 percent to 4,363.55.

The U.S. dollar was mixed. The euro fell to 1.1559 towards the New York close Wednesday. The British pound dropped to 1.3586. The Japanese yen was a fraction higher at 111.41, as was the Swiss franc at 0.9272.

The Canadian dollar firmed to 1.2589. The Australian dollar retained its strength at 0.7276. The New Zealand dollar weakened to 0.6915.

Sharemarkets in Europe were sharply weaker Wednesday. Germany's Dax index lost 1.46 percent Wednesday. The CAC 40 in Paris fell 1.26 percent. In London, the FTSE 100 was down 0.15 percent.

On Asian markets, in Japan, the Nikkei 225 dropped 293.25 points or 1.05 percent to 27,528.89.

The Australian All Ordinaries fell 40.30 points or 0.53 percent to 7,496.20.

The Hang Seng in Hong Kong let go 137.66 points or 0.57 percent to close Wednesday at 23,966.49.

In China, the Shanghai Composite did not trade due to a continuing public holiday.

More Beijing News

Access More

Sign up for Beijing News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!