Global Markets Slide as Deadline to Raise U.S. Debt Ceiling Looms

Equity markets around the world fell broadly Friday, as a week-long slide was further extended by the lack of progress in debt ceiling negotiations in Washington. Asian stock markets closed lower today as investors trimmed positions ahead of the weekend. Japan's Nikkei Index and China's Shanghai index fell, with London's FTSE Index and Germany's DAX Index both down on the session as well. Discussions to raise the U.S. debt ceiling by the August 2 deadline have yielded little success in the past few weeks. Numerous attempts to create a "grand bargain" to reduce the budget deficit have repeatedly fallen apart. With market commentators largely expecting a deal to be reached in the 11th hour, global capital markets have remained relatively stable. That hasn't stopped investors from bracing for volatility, however, with many cashing or hedging positions. White House officials and legislators alike have been scrambling to find a common agreement before next week. The country risks defaulting and losing its AAA debt rating. President Barack Obama held a nationally-televised press conference Monday night urging action on the part of Congress. "The only reason this balanced approach isn't on its way to becoming law right now is because a significant number of Republicans in Congress are insisting on a cuts-only approach - an approach that doesn't ask the wealthiest Americans or biggest corporations to contribute anything at all," he said. "And because nothing is asked of those at the top of the income scales, such an approach would close the deficit only with more severe cuts to programs we all care about - cuts that place a greater burden on working families." Republican House Speaker John Boehner's debt plan failed to gain enough support for a vote Thursday, though he may make another attempt Friday.