LONDON/SYDNEY—The U.S. dollar steadied after climbing to a two-month high and European stocks flattened on Tuesday as relief that a possible default by the U.S. government had been averted gave way to concern that the deal could face a rocky path through Congress.
The U.S. dollar index and longer-dated U.S. Treasuries rallied as traders welcomed the deal to suspend Washington’s borrowing limit until January 2025 in exchange for caps on spending and cuts in government programmes.
But European stocks steadied after slipping in early trading, dented by uncertainty on whether the Congress will approve the deal after a handful of Republican lawmakers said on Monday they would oppose the bill, though it is expected to pass….