In Europe the FTSE (-1%) and CAC (-1.1%) were the hardest hit, whilst the DAC (-0.5%) didn’t fare so badly.
Stateside, the Dow shed 97 points (-0.8%), whilst the S&P 500 lost 0.7% and the Nasdaq shed 0.4%.
Heading into the new trading week, however, there are signs that lawmakers in the US will come to resolution before the 2 August deadline.
Events over the weekend have seen futures markets jump higher this morning, after Senate Majority Leader Harry Reid gave tentative approval to a deal that would raise the nation’s debt ceiling whilst cutting spending.
This development came amid comments from both the Republicans and the Democrats that they were cautiously optimistic a deal could be done. This is the closest to two sides have been to date.
The US dollar rose following the news regarding the negotiations, moving higher against the euro, yen and Swiss franc.
Elsewhere, the Aussie and Kiwi dollars gained versus the yen as prospects for a debt accord boosted demand for higher yielding assets.
Today’s session will bring us data in the form of the Melbourne Institute inflation gauge, at 10:30am, AEST.