Global stocks, Treasuries fall as investors await debt ceiling vote

On Wednesday, global stocks and US Treasuries were lower as risk-off sentiment dominated markets, with investors focused on a much-anticipated vote in Congress to raise the US debt ceiling.

The House of Representatives is set to vote on Wednesday on a bipartisan agreement to lift the $31.4 trillion ceiling and allow the government to avert a default. Republicans hold a slim majority, making the bill a potentially tricky hurdle through the House of Representatives. It is not clear how many House Democrats will vote for it in the 2016 election.

The jitters are expected as there is a very small chance there could be an issue with the vote later tonight, said Ryan Detrick, Carson Group's chief market strategist.

We don't anticipate that, but until the final papers are signed on the president's desk, some apprehension isn't abnormal, Detrick said, adding that month-end profit-taking was also underway.

The MSCI world equity index, which tracks shares in 50 countries, lost 0.82 percent. European shares are down 1.07 percent at 1.07 p.m.

On the Wall Street, all three major indexes closed lower, mainly due to a selloff in technology, financial, consumer discretionary and industrial stocks. The Dow Jones industrial average was down 0.41 percent at 32,908. The S&P 500 lost 0.61 percent to 4,179, its lowest level since August, according to The Wall Street Journal. 83 and the Nasdaq Composite dropped 0.63 percent to 12,935. The US dollar's yields dipped lower after data showing an unexpected rise in job openings and comments by Federal Reserve officials, including vice-chair nominee Philip Jefferson, about possibly skipping a rate hike at its next meeting. Benchmark's 10 year note yield fell to 3.6407 percent.

The dollar, which had surged to a record high in more than a two-month high, retreated after the comments by Fed officials. The dollar climbed 0.163 percent, with the euro down 0.44 percent at $1.0686.

Brent Crude Futures fell $1.11 to $72.60 a barrel, while the US West Texas Intermediate crude dropped $1.37, or 2 percent, to $68.09.

Gold prices remained robust despite the dollar's strong sentiment, though positive sentiment about the US debt deal had kept bullion on course for a first monthly dip in three months.

Gold dipped 0.2 percent to $1,963 from $1,963 a year ago. 00 an ounce, while gold futures US gold rose 0.29 percent to $1,963. 70 an ounce.