Markets jittery over US debt deal
The raising of America’s debt ceiling may end the immediate risk of a US default — which would surely plunge financial markets and economies around the world into turmoil — but analysts were yesterday suggesting that it wouldn’t go far enough to secure the US the top AAA credit rating.
Added to that, weak US manufacturing data published yesterday — showing a 4.4% decline in July activity to a two-year low — kept international markets jittery and added to concerns that the American economy is still only on a slow track to growth.
