World stock markets jumped Monday after Barack Obama announced last minute deal to increase the government’s debt limit and avoid a default. President Barack Obama announced late Sunday that the deal agreed with the Republican and Democratic leaders would cut more than $ 2 trillion in federal spending over the next decade . Congress is expected to vote on the bill Monday.
Benchmark oil for August delivery was up $ 1.41 to $ 97.11 a barrel by noon Singapore time in electronic trading on the New York Mercantile Exchange. Crude oil fell $ 1.74 to settle at $ 95.70 on Friday.Japan’s Nikkei share average rose in line with U.S. futures up 1.7 percent as investors bought back technology-related stocks.
Investors are still cautious about the plan as it comes to a vote in Congress Monday, might not necessarily meet Standard & Poor’s NOK to keep the U.S. triple-A debt rating.Oil prices sputtered down from near $ 100 last week right investor is a U.S. debt default could trigger a recession and hurt crude demand.
Crude also fell last week because of evidence of U.S. economic growth is slowing. The U.S. Commerce Department said Friday that the world’s largest economy grew at an annual rate of only 1.3 percent in the second quarter.In London Brent crude was up $ 1.21 to $ 117.95 a barrel on the ICE Futures Exchange.
“Friday’s GDP figures can charitably be described as shocking,” Energy consultancy The Schork Group said in a report. “The American economy has stagnated.” Barack Obama announced late Sunday that the deal agreed with the Republican and Democratic leaders would cut more than $ 2 trillion in federal spending over the next decade. Congress is expected to vote on the bill Monday.
