Market Update
Equities in Europe edged lower Friday, with U.S. lawmakers failing to make progress toward resolving the debt-ceiling issue as the August 2 deadline inches closer.
At the time of writing, Britain's FTSE, France's CAC and Germany's DAX were trading 0.6% to 1.2% lower.
On Thursday evening, House Republicans failed to vote on a plan by Speaker John Boehner amid some opposition within the party. U.S. Congressional leaders from both parties need to pull through a plan before August 2 to allow the U.S. to lift its debt ceiling that would extend its borrowing limits and avert an unprecedented payments default.
But Republican-lawmakers, which dominate the House and Democratic Senators, who are a majority in the Senate, have not been able to agree to lift the debt ceiling, with both camps sparring on how to cut the country's soaring deficits before allowing further extension of borrowing.
Banks were sharply lower in Europe as the possibility of a U.S. default, which some analysts say could potentially wreak havoc on the global financial system, increases by the day. Barclays, BNP Paribas, Credit Agricole and Societe Generale lost 1.8% to 2.6%.
Shares in Vodafone Group, however, climbed 4.7%, after Verizon, its U.S. joint venture, announced a dividend payout.