(as of 7:30 PST)
Power hungry members of
Congress are relishing their might while casting aside the better interests of
the nation as the US Government continues into its second day of partial
shutdown. The ho-mum reaction of the
markets yesterday is in sharp comparison to today’s reality check. The Dow is down triple digits and other
indexes are following. It still feels as
if reactions are somewhat muted in that the volatility is still in line with
normal market activity. Employment data
came in very soft this morning and a prior period’s data was revised
downward. International economies appear
to be on the rebound, but their markets are also taking cues from the mess in
Washington, DC. Gold is on the rebound
after a sharp selloff yesterday. Oil is
up a small amount after a week of declines.
Interest rates have drifted downward over the last few days as ‘taper
talk’ is off the table at this point.
One gets the feeling that key Republican players in the House of
Representatives have made their point and that negotiations will now pickup and
that a short term fix will follow in short order.
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