Quotes from Societe Generale Cross Asset Research:
-US President Obama signed off the short-term deal agreed overnight by the US Congress to immediately re-open and fund the government until 15 January 2014 and raise the debt ceiling until 7 February 2014.
-This implies that we should finally have a read on the September employment and retail sales report over the next four days which will be the next big event for investors. Asian equities were trading positive following US stocks as relief greeted the US compromise, but the USD is trading lower as UST 10y yields slip to 2.65%.
-The short-term nature of the approved bill (hostilities may resume in the new year, budget talks now set for 13 December) may not be enough for agencies like Fitch to drop their 'negative watch' which implies that a downgrade could still come within six months.
2013-10-17 12:42