World Shares Stall as U.S. Debt Debate Looms

World Shares Stall as U.S. Debt Debate Looms

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MRRussian-Trader-on-Phone

Fox Business – World shares stalled near 18-month highs and safe-haven U.S. Treasuries rose on Tuesday as a looming battle in Washington over the government’s borrowing limit and a recovery in the Japanese yen eased demand for riskier assets.

Investors became more cautious as a refusal by Congress to increase the $16.4 trillion ceiling would raise the risk that the United States could default on its debt by the spring.

A warning from Federal Reserve Chairman Ben Bernanke over the economic impact of any failure to agree a higher ceiling, a Treasury prediction the limit could be hit by mid-February, and President Barack Obama’s tough negotiating stance combined to subdue markets which have gained since the New Year.

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