1) Republicans block debt-ceiling raise bill
The U.S. Senates blocked a House-passed bill that would fund the government as well as raising the debt ceiling to prevent a government shutdown from a potential default on U.S. debt. The world’s largest economy is at risk for a default by October if Congress fails to raise the debt ceiling.
2) A gridlock in German election
Preliminary results of the German election on Monday morning showed the Social Democratic Party gaining a slight edge of the vote with 25.7%. Meanwhile, Angela Merkel’s Christian Democratic Union and Christian Social Union has 24.1% of the vote. It will become a gridlock for the German political parties that would end up in coalition talks.
3) U.S. 10-year Treasury crossed 1.5% to 3-month high
The U.S. 10-year Treasury yield briefly surpassed 1.5% on Monday, setting the highest level since June amid economic optimism and inflation fears. However, the treasury yield later retreated from three month-high to 1.4802%.
4) Oil prices sets to reach $80
Oil prices closed higher on Monday for its fifth consecutive day, heading to the $80 mark. The international benchmark Brent crude rose 1.84% to settle at $79.53 per barrel, while West Texas Intermediate (WTI) closed 2% higher at $75.45 per barrel.