| Markets will be dominated by news from the US in the coming weeks as the political showdown over the funding of the US government continues. So far, the government shutdown has not created high levels of anxiety in markets. This is because the shutdown itself is not the big problem for investors or US politicians, but failure to reach an agreement on the debt ceiling might be.
If the US did default on Treasury debt, the damage to the economy would be huge. The US is expected to reach its borrowing limit around the middle of October, but there is potentially enough cash down the back of the sofa for the US government to continue to meet obligations for another couple of weeks after this without additional borrowing...............................................Full Article: Source
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