Worries over a debt ceiling showdown are creeping into U.S. options markets, as investors grow increasingly concerned that lawmakers will be unable to hammer out a deal in coming weeks. | Reuters
“It’s something that is definitely getting increasing attention,” said Alex Kosoglyadov, managing director of equity derivatives at Nomura.
Meanwhile, the volatility term structure – a curve showing the change in expectation for future stock market gyrations – shows the July futures for the Cboe Volatility Index , often called “Wall Street’s fear gauge”, trading 1.2 points higher than June, the largest gap of any two months between June and December.
U.S. Treasury Secretary Janet Yellen on Tuesday warned that failure by Congress to raise the government’s debt ceiling – and the resulting default – would trigger an “economic catastrophe” that would send interest rates higher for years to come.Legislative standoffs over debt limits this last decade have largely been resolved before they could ripple out into markets. That has not always been the case: A protracted standoff in 2011 prompted Standard & Poor’s to downgrade the U.S.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
World Bank chief economist calls for new approaches to address ‘debt crisis’World Bank chief economist Indermit Gill is calling for new approaches to address the mounting debt crisis facing many countries, including steps to factor domestic borrowing into assessment of a country’s debt sustainability. | Reuters
Read more »
Nasdaq underperforms on worries about tech earnings aheadThe Nasdaq closed lower, underperforming the S&P 500 and the Dow, with pressure from high-profile megacaps as investors awaited results from companies including Microsoft while Tesla shares fell on concerns about its spending plans. | Reuters
Read more »
ACEN plans to raise P30 billion from debt marketACEN Corp., the power generation arm of Ayala Corp., plans to tap the debt market to raise P30 billion to partly finance 2023 capital expenditures.
Read more »
UBS quarterly profit tumbles as cost of old toxic debt mountsUBS Group has set aside more money to draw a line under its involvement in toxic mortgages, halving its first-quarter profit as it prepares to integrate fallen rival Credit Suisse. | Reuters
Read more »
US lawmakers lock horns over debt limit as default threat loomsUS representatives were set to vote as early as Wednesday on Republican proposals combining steep spending cuts with a hike in the country’s borrowing limit to head off a potentially catastrophic credit default. | AFP
Read more »
Guterres proposes ‘way forward’ for Ukraine grain initiativeUnited Nations chief Antonio Guterres presented a "way forward" on extending Ukrainian grain exports during a meeting with Russia Foreign Minister Sergei Lavrov in New York Monday, the UN
Read more »