China and Japan ratcheted up pressure on the US to avoid an unprecedented US default on its debt as Democrats and Republicans continued their standoff in the second week of a US government shutdown.
Two senior White House economic officials said yesterday that President Barack Obama would not back down from his refusal to negotiate with Republicans in Congress, increasing worries that the debt ceiling limit would be reached on October 17 without an agreement, raising the threat of a default.
Global markets were jittery over the latest signs of a stalemate, with the S&P 500 dropping by more than 9 points, the FTSE All-World equity index down around 0.5 per cent and the Dow falling by more than 0.6 per cent.
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