Stocks, US Bonds Steady as Debt Talks Continue - Europe Market Wrap

- As investors awaited more information on whether US politicians would be able to negotiate a debt accord, equity markets remained stable and Treasury yields hovered close to two-month highs.

- Two-year Treasury note yields stood at 4.49%, and S&P 500 futures traded with little movement. Following the fading of early gains from mining firms, European shares levelled off.

- According to persons familiar with the situation, Republican and White House negotiators are getting closer to reaching an agreement to increase the debt ceiling and put a two-year spending restriction on the federal government. According to the persons, the two parties have narrowed their differences in recent days of negotiations, albeit the details reached are still preliminary and no formal agreement has been reached.

- A measure of the dollar's strength dropped after rising for four days.

- The pound gained value as hopes of further interest rate increases were boosted by a positive reading of UK retail sales.

- UBS, Credit Suisse offer Asia wealth bankers a cut on inflows.