03:03
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Beijing-the global stock markets is Friday after U.S. lawmakers postpone a vote on raising the debt limit of the Government and to avoid a potential insolvency.
Oil fell below $ 97 per barrel as investors watched the political wrangling in Washington and Vin scenarios worse than U.S. default if lawmakers do not miss a deadline of Tuesday to increase the amount, which the Government can borrow.
The Treasury Department says the debt ceiling — currently at 14.3 billion — should be raised or the Government does not have enough money to cover all its bills. That has led to fears that the United States could default on its debt and give the fragile global economy.
"We're basically standing on the edge of an abyss, with peak above the background nowhere to be seen," said IG markets strategist Ben Potter in a report. He warned that without a deal Monday, markets could "risk based on fear that could quickly get out of control."
In Europe, France's CAC-40 shed 3 percent to 1.1, 672.93 while Germany DAX lost 1 percent to 7, 118.76. London's FTSE 100 fell 0.9 percent to 5, 822.57.
Wall Street was set to fall. Dow Futures fell 0.4 percent to 12.148 and the broader s & P 500 futures up 0.4 percent to 1, 291.80.
Nikkei 225 stock average Japan closed 0.7 percent to 9, 833.03. Index of Hong Kong's Hang Seng lost 0.6 percent to 22, 440.25 and China's Shanghai Composite Index shed 0.3 per cent to 2, 701.73.
South Korea's Kospi slid 2% to 1.1, 133.21. Australia and Bombay declined even as Singapore gained 0.1 percent.
The dollar is 77.61 yen in Asia from 77.88 yen late Thursday in New York. The euro fell to $ $ 1.4311 1.4279.
Republican leaders in the House of representatives delayed the vote on the Bill to extend the limit of government debt and cut federal spending, although there was an expectation that occur later Thursday evening in Washington.
On Wall Street, a late sell-off erased earlier gains Thursday as investors fretted that the Bill headed for a vote in the House of representatives fail to lead to a breakthrough in the stalemate.
The Dow Jones industrial average fell 62.44 points, or 0.5 percent, to close at 240.11 on Thursday, 12. The index had been up as many 82 points earlier in the day following an unexpected drop in new claims for unemployment benefits.
The Standard & poor's 500 fell by 0.3 per cent to close at 1, 300.67. The Nasdaq composite index, however, edged 0.1% at 2, 766.25.
Landmark oil for September delivery fell 59 cents to $96,83 per barrel in electronic trading on the New York Mercantile Exchange. Crude rose 4 cents to settle at $ 97.44 on Thursday.
In London, Brent crude slipped 23 cents to $ 117.13 per barrel on the ICE Futures exchange.
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AP Business Writer helped Kelly Olsen in Seoul.
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