Sentiment was weighed also by data showing China's economic recovery remained sticky, with key indicators missing expectations owing to weak domestic demand."Concerns are rising that not enough progress is being made to avoid a US default, which would send shockwaves through financial markets," noted Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Republicans are demanding spending cuts as a condition for passing the bill while Democrats want a"clean" increase of the borrowing limit with no strings attached. Chicago Fed boss Austan Goolsbee said he wanted to wait for the effects of more than a year of increases aimed at bringing inflation down from multi-decade highs.
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