A media report said that U.S. House Speaker Kevin McCarthy does not know if congressional and White House negotiators will be able to reach a deal on raising the debt limit on Thursday, renewing fears of an unprecedented default in the United States.
"The U.S. debt ceiling is headline at the moment - the uncertainty that it is bringing to the markets is incredibly difficult to navigate," said Helen Jewell, deputy chief investment officer at BlackRock Fundamental Equities for EMEA. European stocks came under strong selling pressure this week as investors fretted over a potential U.S. debt default and sticky inflation in the UK, after a strong earnings season had boosted several regional bourses to record highs.on a slide in crude oil prices, while luxury majors took a breather and helped stave off steeper losses on the STOXX 600.
"Luxury stocks can weather a recession, because high net worth individuals tend to purchase these ... so if the stocks see a deeper dip, I would see that as a potential value buy," said Giles Coghlan, chief market analyst at HYCM.