US Debt talks collapse this weekend

Markets have reacted negatively in Asia to a stalemate in the political wrangling in the US as to how they can reduce their huge debt pile.

However action is needed now, to allow a raise in the debt ceiling which has to be passed into law by early August, to meet obligations falling due and this just isn't happening.

Should the US default on interest payments on it's £8.7 trillion debts due on August 2nd, the financial markets will be in uncharted territory and some level of financial market meltdown could easily occur.

However, all the US players currently involved in negotiations, headed by President Obama, are aware of the proximity to key deadlines and it is widely expected that a solution to the current impasse will be found, in time.

For now though, the US situation is hanging over the markets that are very aware of the chaos that could ensue in the near future that has little in the way of positive news to deal with, outside of the recent rise in major US technology stocks, on record figures.