World markets fall on fears U.S. blockade of debt default

The collapse of negotiations between John Boehner and President Obama leaves the possibility of the first major default value by the United States. Photo: GETTY

Brinkmanship political Washington on the ceiling of the country's debt of $ 14.3 billion ($ 8.8 billion of £) pushed gold in a record of $1.616 an ounce and the Swiss franc higher against the dollar.

In New York, the Dow Jones opened 104 points - or 0 8pc - at 12,572.36, with the broader S & P 500 and the Nasdaq also sliding. FTSE 100 index in London, leading shares fell from 0 3pc in 5918.24, in Germany of DAX dragged 0 1pc and the France CAC 0 4pc.

A US Congress strongly divided pursued plans budget rival Monday that appears unlikely to win broad support, pushing the United States more about a failure to downgrade and debt ratings would send new shock waves world markets.

In Nikkei 225 of the Tokyo Asia 0. 8pc lost, Hang Seng Hong Kong slipped 0. FP7, Nestle in Seoul fell 1pc and fell ASX Australian 1. FP6. Shanghai Composite China slipped by 2 96pc and the Shenzhen Composite declined 3 75pc, with the railway accident of last Saturday, also have an impact.

"The only thing you can be sure in the next hours and days is the volatility as continuing political posturing in the United States, said Ben Potter, strategist, IG markets market, in a report."

Weeks of talks between Democrats and Republicans to raise the ceiling of the debt of $ 14.3 billion ($ 8.8 billion of £) of the country and prevent by default do not relate to this product, and the negotiations between President Obama and John Boehner, the top Republican in Congress, disintegrated Friday.

The President now faces a rush to get an agreement agreed and voted by the Congress prior to the date limit of 2 August, when the United States will never know her first by default. A plunge in markets in the world shows that there are concerns that this would not be possible, or anxiety as possible these increases or spending cuts.

Futures contracts indicated that Wall Street will also be slide, the Dow Jones, the broader S & P 500 and NASDAQ technology rich of forecasting open downwards on 1pc.

The US is facing increasing pressure to reach a resolution, as the impact of U.S. default would be felt around the world. Business Secretary Vince Cable said the BBC Andrew Marr Sunday that it could have repercussions for the United Kingdom.

"The irony of the situation at the moment, with opening tomorrow morning, markets, is that the greatest threat to the global financial system has been a few nutters right in the US Congress rather than the euro area," he said.

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