MARKETS / FINANCE

Stocks turned negative after a strong opening on Monday as relief over a last-ditch debt deal in Washington faded after a weak reading on the manufacturing sector.

Stocks rallied on Monday on relief over a last-ditch deal in Washington to raise the U.S. borrowing limit and avert an unprecedented default, though analysts said the gains could be short-lived.

With the debt deal negotiations done, the focus now shifts to the Republican-led House, where Speaker John Boehner, R-Ohio, will try to attract moderate Democrats to offset the likely high number of Tea Party House members who will vote against the bill. A Senate vote on the bill also could occur later Monday.

Euro zone growth is set to be above its ideal non-inflationary potential rate for 2011 and 2012, but inflation expectations remain anchored, European Central Bank Governing Council member Yves Mersch was quoted as saying.

Factories in Asia and Europe all but stagnated in July, according to business surveys that showed the weakest rates of growth since major industrial powers were struggling through the 2009 recession.

Stock index futures surged more than 1 percent on Monday on relief over a deal in Washington to raise the debt ceiling, avoiding an unprecedented default.

EU and IMF officials launched their first review of Portugal's international bailout on Monday, with the focus on how the government plans to correct a budget slippage and meet its promised fiscal targets this year.

Stock index futures surged more than 1 percent on Monday on relief over a deal in Washington to raise the debt ceiling, avoiding an unprecedented default.

Stock index futures jumped on Monday, pointing to sharp gains in equities, as Republican and Democratic leaders reached an agreement to cut about $2.4 trillion from the deficit and avoid an unprecedented U.S. default.

HSBC reported a surprise increase in first half profit and said it remained positive on the prospects for emerging market economies, even if the United States and Europe are likely to remain sluggish.

Stock index futures jumped at the start of electronic trading on Sunday evening as investors bet that lawmakers in Washington were set to reach a deal on raising the country's debt limit.

Investors boosted stocks and sold safe-haven assets on Monday, betting that a last-minute deal in Washington meant the U.S. economy would avoid default.

China's factory activity slowed down in July and by one measure contracted as manufacturing across much of Asia weakened on signs that global demand is losing momentum.

Chinese internet portal Sohu.com Inc posted a 37 percent increase in second-quarter net profit, helped by strong performance in its online games and brand advertising units and forecast third-quarter revenue above market estimates.

China pledged to keep to a prudent monetary policy for the rest of the year to combat inflation, which is stubbornly fixed near a three-year high.

China's central bank said it would keep monetary policy prudent for the rest of the year as inflation risks escalating from three-year highs if it takes its foot off the policy brakes.

Japan's finance minister kept up verbal intervention against a rising yen even as a weak dollar won a reprieve on Monday as U.S. lawmakers reached an agreement to raise the debt ceiling and avoid a sovereign default.

Reinsurer Validus Holdings Ltd on Sunday urged target Transatlantic Holdings Inc to enter into discussions over its proposed takeover and said its offer is superior to one from Allied World Assurance Co .

HSBC Holdings Plc said on Sunday it will shed nearly half of its underperforming U.S. branch network, selling 195 branches to First Niagara Financial Group Inc for about $1 billion, and closing 13 others.

Two days before a financial market-rocking U.S. Government default, President Barack Obama Sunday night announced that leaders of both major political parties have reached a debt deal agreement to reduce the U.S. deficit and avert a default. Both the Senate and the House are expected to vote on the bill Monday.

Commercial Metals Co said on Sunday it has adopted a stockholder rights plan, making it harder for activist investor Carl Icahn to take a bigger stake in the steel maker.

The terrifying prospect of a U.S. debt default has left a cloud over businesses already reeling from the economy's tepid performance, and likely left them reluctant to ramp up hiring in July.

Governments and policy makers around the world warned of the risk of financial disaster if Washington fails to raise the U.S. debt ceiling.

The likely bipartisan debt deal bill received another boost Sunday afternoon when key Senate Tea Party members said they would not try to delay a vote on the bill via parliamentary tactics. As a result, a Senate vote could occur Monday -- which means the bill could be ready for a House vote later that day.

A deal involving up to $3 trillion in deficit cuts over a decade that would let U.S. lawmakers raise the U.S. borrowing limit and avoid default could spur a relief rally in Wall Street stocks and a rise in U.S. government yields on Monday.

Automakers have agreed to produce by the quarter-century mark the most fuel- efficient cars and trucks ever that will leverage new designs and technology, but still rely heavily on gasoline engines.

If debate in Washington over raising the U.S. debt ceiling finally ends with a deal on Sunday, the last-minute reprieve could spark a relief rally when global markets open.

It was John Lennon who said there are no problems, only solutions, and on Sunday Congressional Democrats and Republicans continued to work on a bill that would avert a dreaded U.S. Government default. If the two sides continue to make progress, a vote on the bill could occur as early as Sunday night.

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