The market reacts well to the American agreement.
Asian and European stock markets are trading higher on Monday after Barack Obama ruled out a US default.
247 – The announcement of the agreement to raise the US debt ceiling last night had a positive impact on the international financial market this morning. At 9:17 AM Paris time, the Paris Stock Exchange was up 1,35%, after a decline of 1,11% on Friday night. London followed the positive trend and registered a variation of +1,6%. Frankfurt opened 1,34% higher, at 7.254 points, compared to 7.158 points at the close of last week. In the Asian market, in Tokyo, the Nikkei 225 rose 1,34%.
The last-minute agreement announced by President Barack Obama between Democrats and Republicans eliminates the risk of a national default. The plan, which is expected to be voted on by both houses of Congress on Monday, provides for deep cuts in public spending, totaling about $1 trillion over ten years, without raising taxes.
The relief seen in the financial market also impacted commodity prices. This morning, the price of a barrel of oil hit $96,88, an increase of $1,18. Meanwhile, the euro remained stable at $1,4393, the same as Friday night.