US Default Avoided for Now, US dollar Weakens after Political Crisis
Senate passed yesterday a shot-term deal by 81 votes for and 18 against, to end partial government closure and safe the biggest economy from debt default. US House also approved the agreement by 285-144 votes. However, that is short-term plan and there are chances for the political impasse risk to return soon in the markets as the government is funded until January 15 2014 and borrowing limit is raised until February 7 2014.
Risk appetite improved during US session with US equities closing in green, the S&P 500 gained 1.38%, Dow Jones industrial Average was up by 1.36% to 15,373.83 and NASDAQ advanced by 1.20%. Asian equities followed with the NIKKEI 225 climbing by 0.83% to 14,586.51 and S&P/ASX 200 rose by 0.38%.
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