- Title: GERMANY: European shares retreat from highs as U.S. debt ceiling looms
- Date: 16th October 2013
- Summary: FRANKFURT, GERMANY (OCTOBER 16, 2013) (REUTERS) WIDE OF TRADING FLOOR BOARD SHOWING DAX GRAPH BOARD SHOWING DAX VALUE OF 8804.44 FROM THE PREVIOUS DAY TRADERS BOARD SHOWING DAX DOWN 0.01 PERCENT VARIOUS OF TRADERS BOARD SHOWING FINANCIAL SHARE VALUES BOARD SHOWING DAX GRAPH TRADERS BOARD SHOWING FINANCIAL SHARE VALUES TRADERS BOARD SHOWING DAX GRAPH WIDE OF BOARD
- Embargoed: 31st October 2013 12:00
- Location: Germany
- Country: Germany
- Topics: Economy,Politics
- Reuters ID: LVA3MS5BJ99U4VCYO0454R85G7UD
- Aspect Ratio:
- Story Text: European shares retreated from multi-year highs on Wednesday (October 16), as uncertainty over the U.S. debt ceiling caused some traders to look to sell out for a profit.
Although the majority of investors still expected an eventual deal over the United States' debt ceiling and its budget stalemate, some said equity markets would be vulnerable to sell-offs until an agreement was reached.
Germany's DAX index, which hit a fresh record high of 8,820.98 points on Tuesday (October 15), was almost flat, down 0.06 percent at 0808GMT.
U.S. Senate leaders were still discussing a deal late on Tuesday aimed at raising the debt limit and reopening federal agencies that have been closed for two weeks. Senate aides said an agreement was close but earlier hopes that it could be announced late on Tuesday were not met.
European stocks rallied on Tuesday after Senate leaders made optimistic noises that a deal would be done, however in Asia stocks slipped after House attempts to get an agreement failed without a vote.
The ongoing risk of a U.S. default was reflected by credit ratings agency Fitch's decision to put the United States on "negative watch," citing the political brinkmanship over raising the federal debt ceiling.
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