Global markets update: US stocks slump on rising worries over debt limit

Another round of debt ceiling talks between White House officials and Congressional Republicans ended withour a conclusion 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 slid 1.1% at 4,145.58. The Dow Jones Industrial Average fell 0.7% at 33,055.51. The tech-rich Nasdaq Composite Index dropped 1.3% at 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 stock shed 1.5%.

The yield on 10-year treasury fell to 3.70% from 3.72% late Monday. The 2-year treasury yield inched up to 4.34% from 4.32%.

Minutes from the Federal Reserve’s May 2-3 meeting are due on Wednesday. 

Currencies

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

Canada

Canada shares declined on Tuesday on losses in technology and industrial stocks.

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

The STOXX Europe Luxury 10 tanked 4.3%, its steepest single-day fall since mid-December.

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

Britain’s FTSE 100 fell 0.1% at 7,762.95. Germany’s DAX lost 0.4% at 16,152.86. France CAC 40 plunged 1.3% at 7,378.71.

Asia

Asian stock markets fell on Tuesday.

Hong Kong’s Hang Seng index dropped 1.3% at 19,431.25. China’s Shanghai Composite shed 1.5% at 3,246.24.

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

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

Energy prices

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