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World shares and US futures fell on Monday after Wall Street ended last week with another drop.

Many markets in Asia were closed for the holidays and analysts said thin trading added to volatility. Shares in Paris and Frankfurt fell more than 2%, while Hong Kong’s benchmark fell 3.3%.

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Investors are watching to see if the Federal Reserve will take any action to offset the impact of rising prices on businesses and consumers.

Investors eagerly await Fed’s announcement

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There are growing concerns about US debt limit. House Democrats said Friday they plan to suspend caps on the government’s lending authority this week, and the White House pressured Republicans by warning state and local governments that serious cuts would go ahead if the measure fails in the Senate. .

Germany’s DAX fell 2.1% to 25,163.25 and Paris’ CAC 40 fell 2.3% to 6,419.61. Britain’s FTSE 100 closed down 1.4% at 6,866.39.

Futures for the S&P 500 fell 0.3%, while contracts for the Dow Industrials fell 1.3%.

The yield on the 10-year Treasury note declined to 1.34% from Friday’s 1.38%.

Heavyweight Hong Kong property companies and banks lost ground over persistent concerns over the potential for a ripple effect from the Chinese developer’s financial troubles Evergreen.

The company was expected to default on interest payments, as rating companies anticipate that it may default on its debt. Its shares fell 10.6 per cent on Monday.

Henderson Land Development declined 13% and New World Development declined 12%, amid reports that China would monitor the property sector in Hong Kong.

Hang Seng in Hong Kong fell 821 points to end at 24,099.14. Australia’s S&P/ASX 200 closed 2% down at 7,248.20. Markets remained closed in mainland China, South Korea, Japan, Taiwan and Malaysia.

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“Asia is off to a nervous start today, with liquidity severely depleted by the holidays,” Oanda’s Jeffrey Haley said in a commentary. “The list of scurrying sharks is long, beginning with the rising US noise about debt limits.”

The Fed is due to deliver its latest economic and interest rate policy update on Wednesday. The central bank has said higher costs for raw materials and consumer goods are still likely to be temporary as the economy recovers, but analysts worry that higher prices could stay around and slacken spending as well as companies. Can put a dent in the bottom lines of.

Wall Street ended last week on a weak note, with the S&P 500 index down 0.9% at 4,432.99, its second straight weekly loss.

The Dow Jones Industrial Average fell 0.5% to 34,584.88 and the Nasdaq fell 0.9% to 15,043.97.

The Russell 2000 Index of Small Companies rose 0.2% to 2,236.87, recovering from an early fall.

In other trade, US benchmark crude oil fell 92 cents to $71.06 a barrel in electronic trading on the New York Mercantile Exchange on Monday. On Friday, it was up 64 cents at $71.97 a barrel.

Brent crude, the standard for international pricing, fell 77 cents to $74.57 a barrel.

The US dollar slipped from 109.95 yen to 109.74 Japanese yen. The euro fell from $1.1731 to $1.1711.