U.S. markets drag overseas markets into negative territory this morning as U.S. lawmakers fail to agree to a deficit reduction plan, thus preventing an increase of the debt ceiling and bringing the U.S. government a step closer to default.
S&P futures are down almost 1% after Republican leader Boehner broke off talks on Friday night with President Obama with the two sides seemingly close to a bi-partisan agreement. However, the breakdown in talks continued into the weekend and now both Democrats and Republicans will pursue dueling partisan plans this week.
European markets remain slightly negative on the failed U.S. debt ceiling talks, while Euro banks are down as
downgrades the sovereign rating of Greece again. The country's rating was slashed three levels to 'Ca' from 'Caa1' because the EU financing package suggests "substantial economic losses" for private investors, according to Moody's.
The MSCI Asia Pacific index also fell 0.9% on the failed U.S. debt ceiling negotiations, led lower by banks and exporters.
SPDR Gold Trust ETF
hits all-time highs again and the
iShares Silver Trust ETF
is up 1.5% as investors seek the safety of precious metals from U.S. and Euro fiat currencies. Crude is down nearly 1% in sympathy with U.S. markets and continues to base below $100. Yet, the
Oil Services ETF
remains in an uptrend, while leading oil stocks like
sit at 52-week highs.
Large cap technology stocks continue to demonstrate relative strength as
rallied into Friday's close, finishing the week on a very positive note. Chinese internet stocks like
also closed strong on Friday --
will release earnings today, after the bell.
are trying to repair themselves technically on the charts after recent pullbacks, while
Las Vegas Sands
, technical laggards, seem to be emerging out of consolidation patterns.
Disclosures: Evan Lazarus has no positions.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.