Currencies

• EUR/USD The dollar weakened against most of its major pears as President Barack Obama and Congress remained at odds on a plan to raise the U.S. debt limit needed to prevent a credit-rating downgrade and a default.
  • The dollar fetched $1.4508 per euro from $1.4511.
  
  
• USD/JPY The greenback slid to as weak as 77.78 yen, a level unseen since March 17, before trading at 77.83 yen as of 1:16 p.m. in Tokyo from 77.88 in New York yesterday.

• AUD/USD Australia's dollar climbed to an all-time high after data showed inflation accelerated.


• GBP/USD The pound reached $1.6439, the highest since June 14, before trading at $1.6431 from $1.6405

Commodities

• Gold surged to an all-time high as investors sought to protect their wealth against the possibility of a U.S. default that may come as soon as next week amid a standoff over the country's $14.3 trillion debt limit.
  • The December-delivery contract gained as much as 0.5 percent to a record $1,628.10 an ounce on the Comex in New York

• Oil fell in New York on speculation rising U.S. crude stockpiles indicated fuel demand is faltering in the world's biggest consumer of the commodity.
  • Prices failed to settle above $100 a barrel yesterday on concern the U.S. may default amid a standoff over the country's $14.3 trillion debt limit.

Equities

• U.S. stocks fell for a second day amid wrangling between lawmakers over plans to raise the federal debt limit and forecasts from 3M Co.
  • The S&P 500, which rallied 2.2 percent last week, dropped 0.4 percent to 1,331.94 at 4 p.m. in New York. The S&P 500 slipped 0.1 percent to 1,325.84 at 4 p.m. in New York.
  • The Dow lost 91.50 points, or 0.7 percent, to 12,501.30.


• In Europe retreated for a second day as companies from BP Plc (BP/) to UBS AG reported earnings that missed analysts' estimates and concern grew that U.S. lawmakers may fail to increase the nation's debt limit.
  • The benchmark Stoxx Europe 600 Index slid 0.4 percent to 270.08 at the 4:30 p.m. close in London.

• Asian bank Most Asian stocks dropped, led by exporters and banks, as a political stalemate over raising the U.S. debt ceiling increases concerns the world's biggest economy could default, stalling the global economic recovery.
  • Japan's Nikkei 225 Stock Average fell 0.5 percent as the yen strengthened against the dollar, cutting the profit outlook for the nation's exporters.
  • Hong Kong's Hang Seng Index was little changed, while China's Shanghai Composite Index swung between gains and losses.

Sources: Bloomberg, FT