Global equities and U.S. Treasury yields were lower on Wednesday as bearish sentiment dominated markets, with investors focused on a much-anticipated vote in Congress on raising the U.S. debt ceiling.
The U.S. House of Representatives is set to vote on Wednesday on a bipartisan deal that would lift the $31.4 trillion ceiling and allow the government to avert a default.
The bill faces a potentially tricky path through the House, where Republicans hold a slim majority. It is unclear how many House Democrats will back it.
“The jitters are expected as there is a very small chance there could be an issue with the vote later tonight,” said Ryan Detrick, chief market strategist at Carson Group.
“We don’t anticipate that, but until the final paper is signed on the president’s desk some apprehension isn’t abnormal,” he said, adding that month-end profit taking was also underway.