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.
The dollar retreated from a two-month high, helping to lift gold, though the yellow metal was poised for a third straight weekly drop as markets expect a debt ceiling deal.
Oil was broadly steady while the dollar remained near a two-month high against its major peers, buoyed by expectations that U.S. interest rates could remain higher for longer….