Global stocks fell, trimming their biggest quarterly gain since the start of 2012, while the Japanese yen strenghtened before a potential U.S. government shutdown. Italian bonds slumped and crude oil traded near its lowest level in three months.
The MSCI All Country World Index lost 0.6 percent as of 12:26 p.m. in London as the Stoxx Europe 600 Index slid 0.7 percent and Asia’s benchmark gauge fell 1.5 percent. Italian 10-year bonds retreated for a third day and the yield on 10-year Treasury notes declined to a seven-week low. The yen rose against 15 of its 16 major peers, reaching a three-week high against the euro. West Texas Intermediate oil fell as much as 1.4 percent.
Congress is scheduled to meet today to end a stalemate that raises the risk of the first government shutdown in 17 years and threatens talks to increase the debt limit. Italy’s government is on the verge of collapse after allies of former leader Silvio Berlusconi said they would quit the cabinet. China’s manufacturing rose less than economists estimated in September.
The House of Representatives voted 231-192 yesterday to stop many of the Affordable Care Act’s central provisions for one year, tying it to an extension of U.S. government funding through Dec. 15. Should the Senate reject the bill today the government could be shut down from tomorrow. Even if the budget fight is resolved, lawmakers would immediately move to the next fiscal dispute over raising the $16.7 trillion debt ceiling.
Failure to approve funding to keep the government open and to raise the debt ceiling would have a destabilizing effect on the economy, President Barack Obama said in a televised statement Sept. 27. Closing the government would cut fourth-quarter economic growth by as much as 1.4 percentage points depending on its length, according to economists from Moody’s Analytics Inc. to Economic Outlook Group LLC.
Read more: Global Stocks Tumble as Shutdown Looms; Treasuries Rise - Bloomberg
The MSCI All Country World Index lost 0.6 percent as of 12:26 p.m. in London as the Stoxx Europe 600 Index slid 0.7 percent and Asia’s benchmark gauge fell 1.5 percent. Italian 10-year bonds retreated for a third day and the yield on 10-year Treasury notes declined to a seven-week low. The yen rose against 15 of its 16 major peers, reaching a three-week high against the euro. West Texas Intermediate oil fell as much as 1.4 percent.
Congress is scheduled to meet today to end a stalemate that raises the risk of the first government shutdown in 17 years and threatens talks to increase the debt limit. Italy’s government is on the verge of collapse after allies of former leader Silvio Berlusconi said they would quit the cabinet. China’s manufacturing rose less than economists estimated in September.
The House of Representatives voted 231-192 yesterday to stop many of the Affordable Care Act’s central provisions for one year, tying it to an extension of U.S. government funding through Dec. 15. Should the Senate reject the bill today the government could be shut down from tomorrow. Even if the budget fight is resolved, lawmakers would immediately move to the next fiscal dispute over raising the $16.7 trillion debt ceiling.
Failure to approve funding to keep the government open and to raise the debt ceiling would have a destabilizing effect on the economy, President Barack Obama said in a televised statement Sept. 27. Closing the government would cut fourth-quarter economic growth by as much as 1.4 percentage points depending on its length, according to economists from Moody’s Analytics Inc. to Economic Outlook Group LLC.
Read more: Global Stocks Tumble as Shutdown Looms; Treasuries Rise - Bloomberg
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