Investors spooked by lack of consensus on US debt ceiling.

European markets opened hesitantly today as a lack of progress over the weekend on extending the US debt ceiling spooked investors. Despite Republicans and President Obama holding a 90-minute talk to try and find a compromise to avoid a default, a concrete resolution failed to be produced.

Nevertheless, Senate leaders still remained confident last night that a deal will be agreed by the 17th October deadline and even Mario Draghi, the head of the ECB, informed reporters over the weekend that a deal should happen before the unthinkable happens.

Clearly most investors believed that a deal would be agreed by now given the fact that the deadline is only a few days away. Thus, it seems analysts are now drawing up plans for what would happen to the world economy if the US was to default, instead of assuming the delay is a result of political point scoring.

Risers:

Johnson Matthey, +4.3% The speciality chemicals company, Johnson Matthey leads the FTSE 100 risers after JPMorgan Cazenove raised the stock to Overweight from Neutral. The firm currently has a 4000p price target on the stock, up from the previous price objective of 2800p.

IP Group, +2.3% Shares in IP Group trade over 2 percent higher after a company backed by IP Group Graphene Materials announces its intention to float on AIM. Graphene Materials, which is based in Redcar, Teesside is understood to want to raise up to £10m by selling shares on AIM. The move will enable it to increase production and accelerate commercial opportunities with blue chip partners.

Balfour Beatty, +2.2% Infrastructure group Balfour Beatty PLC announced Monday that it has been awarded the 77 million pound I-140 Wilmington Bypass project in North Carolina. Balfour Beatty will construct around 1.5 miles of a four-lane road in the southeast counties of Brunswick and New Hanover.

Carillion, +2% Support services company Carillion PLC said Monday that it is part of the consortium selected by Manchester Airports Group to build the 800 million pound ($1.28 billion) Airport City development at Manchester Airport. Carillion said it will invest up to GBP12 million in the project, which is expected to take 15 years to complete. The consortium also comprises the Chinese building company Beijing

Urals, +20% Aim-quoted Russian oil explorer Urals Energy have announced they received a cash bid that values it two-thirds higher than its closing price on Friday. Shares closed Friday at 7.5p with the offer pricing the shares at 12.5p which valued the company at £19 million. The chairman Andrew Shrager declined to name the company’s suitor but stated the proposed offer is described as being from a “highly credible purchaser with previous Russian operational oil experience”.

Fallers:

Croda International, -2% The holding company for a group of companies that manufacture a diverse range of chemicals and chemical products had its Overweight rating at JPMorgan Cazenove cut to Neutral. Shares dropped on the downgrade with JPMorgan holding a 2628p price target on the stock.

Royal Bank of Scotland, -2% Royal Bank Scotland shares dragged lower, leading the financial decliners after Bank of America-Merrill Lynch downgraded RBS to underperform from neutral. BofA currently has a 325p price target, down from their pervious price target of 345p,

Michael Page, -6% Shares in the leading UK recruitment agency has reported gross profit for the three months was up 0.4% to £127 million, which comprised £96.8 million from permanent placements and £30.2 million from temporary jobs. They issued a statement which stated they expect another challenging quarter ahead and nudged its full-year guidance lower. Adding a further blow, Michael Page has now begun the search for a new chief financial officer after CEO Andrew Bracey resigned following the results.

Chemring Group, -2.4% The global group of companies that specialises in the manufacture of energetic material products and advanced expendable countermeasures had their Overweight rating cut to Neutral at JPMorgan Cazenove. Liberum Capital maintained their hold rating on the stock who currently have a 205p price target on the stock.

Software Radio, -7% The company that develops and licenses technology designs for wireless products announces that trading is in line with expectations, although meeting them will require various mandates coming through from potential customers. The company has also agreed to acquire 3D visualisation business GeoVS for £955,000 worth of shares.