The Paris stock market opened slightly lower on Monday. Investors are cautious ahead of the resumption of negotiations between U.S. President Joe Biden and Republican Speaker of the House of Representatives Kevin McCarthy on raising the U.S. debt ceiling.
Fearful recovery of the Paris Stock Exchange at the beginning of the week. Around noon, the main CAC 40 index was down 12.10 points at 7,465.15 points. On Friday, it had recorded a rise of 0.61% and ended the week on a rise of 1.04% to 7 491.96 points.
The Paris stock market had also exceeded 7,500 points on Friday, but it had given up some of its gains in the last half hour following the worsening of tensions between Democratic and Republican negotiators.
“As we enter another important week, we feel that we are likely to see further twists and turns in this sorry saga, with neither side doing particularly well”, summarized Michael Hewson of CMC Markets.
Biden meets with McCarthy
On Monday, President Joe Biden, back from the G7 summit in Japan, will hold an in-person meeting with Republican leader Kevin McCarthy to continue negotiations, with just 10 days to go before a default deadline. Over the weekend, Treasury Secretary Janet Yellen again warned that a failure of the talks would have serious economic consequences for the United States.
Republicans are demanding federal spending cuts as a precondition for their agreement. The Biden administration is refusing to do so and is instead proposing to cut some spending while raising taxes on the wealthiest and corporations.
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