''Markets paused at a two-week high on Monday as investors refrained from building as concerns over the US debt ceiling and mixed data from China weighed on risk appetite.
London's benchmark FTSE 100 was trading with small gains by midday after finishing Friday's session at 6,483.79, its highest close since September 27th.
US lawmakers held talks over the weekend but failed to agree over an increase in the debt ceiling ahead of the October 17th deadline as Republicans and Democrats remain divided over a number of issues.
Senate Majority Leader Harry Reid said that he had a "productive conversation" with Minority Leader Mitch McConnell but they did not agree on a proposal to send to the chamber for a vote. "I'm optimistic about the prospects for a positive conclusion," Reid said following the debate. More discussions are scheduled for later this evening.
Without a deal by Thursday, the world's largest economy will exhaust its borrowing limit and could default on its debt obligations.
"Clearly most investors believed that a deal would be agreed by now given the fact that the deadline is only a few days away," said Shavaz Dhalla, Financial Trader at Spreadex. "Thus, it seems analysts are now drawing up plans for what would happen to the world economy if the US was to default, instead of assuming the delay is a result of political point scoring."
London's benchmark FTSE 100 was trading with small gains by midday after finishing Friday's session at 6,483.79, its highest close since September 27th.
US lawmakers held talks over the weekend but failed to agree over an increase in the debt ceiling ahead of the October 17th deadline as Republicans and Democrats remain divided over a number of issues.
Senate Majority Leader Harry Reid said that he had a "productive conversation" with Minority Leader Mitch McConnell but they did not agree on a proposal to send to the chamber for a vote. "I'm optimistic about the prospects for a positive conclusion," Reid said following the debate. More discussions are scheduled for later this evening.
Without a deal by Thursday, the world's largest economy will exhaust its borrowing limit and could default on its debt obligations.
"Clearly most investors believed that a deal would be agreed by now given the fact that the deadline is only a few days away," said Shavaz Dhalla, Financial Trader at Spreadex. "Thus, it seems analysts are now drawing up plans for what would happen to the world economy if the US was to default, instead of assuming the delay is a result of political point scoring."
