BEIJING (AP) — Global stock markets sank Wednesday ahead of a vote by the U.S. Congress on a deal to avert a government debt default, while a downturn in Chinese factory activity deepened, adding to signs that the world’s economic activity is weakening.

Markets in London, Shanghai, Paris and Tokyo retreated. Oil prices declined.

Wall Street’s benchmark S&P 500 index edged up less than 0.1% on Tuesday as President Joe Biden and Speaker Kevin McCarthy of the House of Representatives tried to line up votes to raise the amount the government is allowed to borrow. Officials warn the Treasury will run out of money as soon as next week, which would roil the economy and financial markets.

“Any upcoming obstacle to a smooth pass-through of the deal could still trigger some de-risking,” Yeap Jun Rong of IG said in a report.

On Wednesday, an official Chinese survey of manufacturers found activity contracted in May on weak global and domestic consumer demand.

In early trading, the FTSE 100 in London lost 0.1% to 7,514.18 and the CAC 40 in Paris sank 0.4% to 7,178.13. The DAX in Frankfurt retreated 0.3% to 15,868.35.

On Wall Street, futures for the S&P 500 and the Dow Jones Industrial Average were off 0.2% ahead of a vote by the full 435-member House on raising the government debt limit. Some legislators object to spending cuts in the plan while others want bigger reductions.

On Tuesday, the Dow slipped 0.2% and the Nasdaq composite rose 0.3%.

In Asia, the Shanghai Composite Index lost 0.6% to 3,204.56 and the Nikkei 225 in Tokyo fell 1.4% to 30,887.88. The Hang Seng in Hong Kong tumbled 1.9% to 18,234.27.

China’s economic recovery has been weaker than some businesspeople and investors hoped.

A monthly purchasing managers’ index issued by the national statistics agency and an industry group declined to 48.4 from April’s 49.2 on a 100-point scale in which numbers below 50 show activity declining. Manufacturers have been hurt by weak global demand and a slower-than-expected recovery in Chinese consumer spending.

The Kospi in Seoul retreated 0.3% to 2,577.12 and the S&P-ASX 200 in Sydney fell 1.6% to 7,091.30.

India’s Sensex lost 0.7% to 62,514.88. New Zealand advanced while Southeast Asian markets declined.

Uncertainty about U.S. government debt adds to market anxiety over signs global economic activity is slowing following interest rate hikes.

Even without a default, all the partisan brinkmanship in Washington could erode faith in the U.S. government. That could trigger another downgrade to its credit rating, following Standard & Poor’s rating cut in 2011.

Traders are bracing for another possible increase in the Federal Reserve’s key lending rate at its next meeting in two weeks but hope that will be the last in this cycle.

A report Tuesday showed confidence among American consumers is falling and is well below where it was before the pandemic.

In energy markets, benchmark U.S. crude gained 36 cents to $69.10 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $3.21 on Tuesday to $69.46. Brent crude, the price basis for international oil trading, shed 44 cents to $73.32 per barrel in London. It sank $3.53 the previous session to $73.54.

The dollar declined to 139.81 yen from Tuesday’s 139.87 yen. The euro retreated to $1.0663 from $1.0719.

Zimbabwe’s foreign ministry has summoned the United States’ deputy ambassador over a series of tweets the embassy sent calling for a peaceful election in a country that has a history of violent and disputed votes.

The ministry accused the embassy of election-related social media posts bordering on activism and meddling in Zimbabwe’s internal affairs.

Deputy Ambassador Elaine French was called to a meeting with Zimbabwe foreign affairs acting permanent secretary Rofina Chikava on Tuesday following the posts on the U.S. Embassy’s official Twitter account.

The Zimbabwe foreign ministry said it had a particular issue with a May 26 tweet that called for Zimbabweans to Register to vote and make sure your voice is heard. Another tweet from the embassy said Zimbabwe’s constitution grants citizens the right to choose their representatives in legitimate, credible, & peaceful elections.

The foreign ministry said the tweet urging people to register to vote was against diplomatic protocols.

We stand by our recent social media posts calling for peace during the election season,” U.S. Embassy spokeswoman Meg Riggs said in a statement. Elections are a part of a functioning democracy.

Zimbabwe President Emmerson Mnangagwa has said the elections will take place in August, although he hasn’t announced a specific date.

But campaigning has started, with opposition parties already alleging violence and intimidation against their supporters by ruling party activists and security forces. Mnangagwa’s ZANU-PF ruling party and the government have denied the allegations but human rights groups have said there is intimidation and Mnangagwa’s government is suppressing criticism amid a currency crisis and a sharp rise in food prices.

Zimbabwe has been under U.S. Sanctions for two decades over human rights abuses, which started under the regime of former president Robert Mugabe, who led Zimbabwe from independence from white minority rule in 1980 until he was removed in a coup in 2017 and replaced by Mnangagwa.

Zimbabwe has had a series of violent and disputed elections since 1980 and this vote is expected to be closely contested.

Catch the latest stock market updates here. For more news on sports, politics follow Zee Business 

Zimbabwe’s foreign ministry has summoned the United States’ deputy ambassador over a series of tweets the embassy sent calling for a peaceful election in a country that has a history of violent and disputed votes.

The ministry accused the embassy of election-related social media posts bordering on activism and meddling in Zimbabwe’s internal affairs.

Deputy Ambassador Elaine French was called to a meeting with Zimbabwe foreign affairs acting permanent secretary Rofina Chikava on Tuesday following the posts on the U.S. Embassy’s official Twitter account.

The Zimbabwe foreign ministry said it had a particular issue with a May 26 tweet that called for Zimbabweans to Register to vote and make sure your voice is heard. Another tweet from the embassy said Zimbabwe’s constitution grants citizens the right to choose their representatives in legitimate, credible, & peaceful elections.

The foreign ministry said the tweet urging people to register to vote was against diplomatic protocols.

We stand by our recent social media posts calling for peace during the election season,” U.S. Embassy spokeswoman Meg Riggs said in a statement. Elections are a part of a functioning democracy.

Zimbabwe President Emmerson Mnangagwa has said the elections will take place in August, although he hasn’t announced a specific date.

But campaigning has started, with opposition parties already alleging violence and intimidation against their supporters by ruling party activists and security forces. Mnangagwa’s ZANU-PF ruling party and the government have denied the allegations but human rights groups have said there is intimidation and Mnangagwa’s government is suppressing criticism amid a currency crisis and a sharp rise in food prices.

Zimbabwe has been under U.S. Sanctions for two decades over human rights abuses, which started under the regime of former president Robert Mugabe, who led Zimbabwe from independence from white minority rule in 1980 until he was removed in a coup in 2017 and replaced by Mnangagwa.

Zimbabwe has had a series of violent and disputed elections since 1980 and this vote is expected to be closely contested.

Catch the latest stock market updates here. For more news on sports, politics follow Zee Business