Stocks were subdued on Friday, except for Japan, which saw a sparkle in its markets. This was due to an artificial intelligence rally taking a breather and as time ran out for high-stakes talks to avoid a U.S. debt default. The situation is tense, as investors are concerned that if no agreement is reached then there could be serious consequences for the global economy – particularly in the US where it would have devastating effects on businesses and consumers alike.
The U.S. government has been struggling to come up with an agreement between Republicans and Democrats over raising America’s borrowing limit before August 2nd when they will run out of money unless Congress agrees to raise it again or risk defaulting on their debts – something that hasn’t happened since 1789!
It appears both sides are still far apart from reaching any kind of compromise so investors remain cautious as they await news from Washington DC about whether or not there will be some sort of resolution before next week’s deadline passes by without incident. For now, though, stocks continue limping towards this denouement while Japan continues to sparkle despite all odds against them.
Read more at Reuters
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