CAC 40 Tumbles As US Debt Ceiling Talks Drag On

French stocks fell sharply on Wednesday as investors awaited clarity on the outcome of debt ceiling negotiations in the United States.

The Treasury Department has asked federal agencies whether they can make upcoming payments at a later date, the Washington Post reported, citing two people familiar with the matter.

U.S. Treasury Secretary Janet Yellen previously warned lawmakers that a default in early June is “highly likely.”

Following recent hawkish talk from several Federal Reserve officials, investors also waited for the minutes from the Federal Reserve’s meeting earlier in May for additional clues on the Fed’s rate hike path.

The benchmark CAC 40 was down 111 points, or 1.5 percent, at 7,267 after falling 1.3 percent the previous day.