Markets are worried by the lack of progress in talks between Republicans and Democrats and the risk of a default on Washington if there is no agreement by next Tuesday.
Wednesday, the White House reiterated that a compromise was still necessary and that Congress had to raise the debt ceiling, currently at 14 300 billion, and to fight against the deficit.
Thursday morning, European and Asian stock markets mostly recanted about 1%. The day before, the Dow Jones lost more than 1.5%, or nearly 200 points in just over 12 300 points. In Toronto, the S & P TSX fell by more than 2%, about 265 points, about 13 000 points.
“No progress is made, the deadline approaches, nervousness increases and investors continue to reduce their exposure to risky assets called,” said Michael James of Wedbush Morgan Securities on Wednesday.