Stocks tumble amid debt deal impasse

Global stock markets dropped on Monday as U.S. politicians again failed to reach a deal to extend that country’s debt ceiling. With an August 2 deadline for a deal now days away, investors in Asia, Europe and the United States have begun to react, pulling money out amid fears of an unprecedented U.S. default, despite reassurances from Secretary of State Hillary Clinton that she is confident a deal will be struck. Congressional Republicans have so far refused all offers of compromise on the debt ceiling from U.S. President Barack Obama. Obama has said he is willing to slash spending in return for some marginal increases in revenue, but Republicans have so far declined these overtures.

The Globe and Mail