Emerging-market stocks declined for the first time in five days as U.S. lawmakers remained deadlocked over extending the debt limit to avoid default, intensifying concern that global economic growth will falter.
Senate Democrats could introduce legislation as soon as today that gives President Barack Obama the authority to raise the debt ceiling unless two-thirds of Congress disapproves, according to a Senate Democratic aide.
President Barack Obama reiterated that he won’t negotiate with Republicans over the partial government shutdown and the U.S. debt limit as Senate Democrats began preparing for a test vote on a clean debt-ceiling bill.
Stocks declined, extending losses from last week, and the yen strengthened as U.S. lawmakers remained deadlocked over extending the debt limit to avoid default. Oil dropped, while government bonds advanced.
U.S. Treasuries rose as investors sought safety and liquidity in the debt of the world’s largest economy amid a political deadlock in efforts to raise the debt ceiling and avoid the first American default.
U.S. financial conditions held at about the highest levels since before the worst financial crisis since the Great Depression as debt investors brushed off House Speaker John Boehner’s warning that America is on a “path” to defaulting on its debts.