Global financial markets Monday welcomed the deal in Washington to avoid a debt default by the government of the world’s largest economy.
Most U.S., Asian and European stock markets moved higher after U.S. President Barack Obama and congressional leaders made an agreement to increase the legal limit on borrowing and cut government spending.
At one point the price of gold dropped more than $15. The precious metal is traditionally a refuge for investors worried about the economy, so the price drop may be linked to an easing of economic tensions.
In morning trading, the price of oil rose nearly 3 percent — the largest gain in two months — as investors bet the agreement would help economic growth and boost energy demand and prices.
But many markets gave up their gains later Monday after a separate economic report showed U.S. manufacturing grew at the slowest pace in two years.