Global Markets Tumble as US Debt Ceiling and German Recession Fears Grow

Markets are stuck in U.S. debt ceiling limbo, with falls in Asia followed by early dips in London, Paris, and Frankfurt. The safe-haven dollar is lifted towards a two-month high, while Washington's short-term borrowing costs have jumped further above 7% after Fitch put its U.S. rating on downgrade watch. Germany has sagged into recession, and UK bond markets are still reeling from Wednesday's inflation shock. A downgrade could affect the pricing of trillions of dollars of Treasury debt securities.