All eyes on America
US Senate aides said an agreement to lift the government’s $16.7 trillion borrowing limit was near but details still needed to be worked out. The market players will be very alert today hoping that an announcement will be made later on Wednesday.
Westpac: “The way the market is trading is, small selloffs on bad news and big rallies on positive news. I’d want to know whether Boehner will present any bill agreed on in the Senate for a vote in the House. That’s what we really need for a real relief rally.”
The US government entered the 16th day of its shutdown as congressional leaders continue to spar over how to proceed with the nation’s budget and borrowing limit. If the debt ceiling is not raised by Thursday, the government will by law no longer be able to add to the national debt and the Treasury could miss an upcoming interest payment on its debt and go into default.
There are 2 big interest payments – on Oct. 31 and Nov. 15 – 2 potential default dates unless the Congress reaches an agreement. Fitch Ratings warned yesterday that it could cut the US AAA credit rating.