Investors Hold Their Breath as US Debt Talks Edge Towards Deal

A man walks past an electronic board showing Japan's Nikkei average and stock prices outside a brokerage, in Tokyo, Japan, on March 17, 2023. Androniki Christodoulou/Reuters

LONDON—Global stock markets were muted on Friday, with investors holding their breath as the White House and U.S. lawmakers edged towards a deal on funding government spending to avoid an economy-shattering default.

U.S. President Joe Biden and top congressional Republican Kevin McCarthy are closing in on an agreement that would raise the government’s $31.4 trillion debt ceiling for two years while capping spending on most items.