Here's my summary of the key overnight news in 90 seconds at 9 am, including news the US Government is braced for a shutdown.
House Republicans and Democrats dug in for a last-ditch battle in a budget fight that has brought the country within hours of the first partial Federal government shutdown since 1996.
Stocks started the day with big losses, but the broad indexes clawed much of them back in mid-afternoon trade, even though there is no deal yet. As the day gets later in Washington, optimism is waning however.
Oil hit a low of US$101/barrel, gold is not reacting at all and is at US$1,330/oz, UST 10yrs are holding at 2.63%. No doubt a deal will release a temporary positive reaction as it has done on other occasions like this.
In Italy, Berlusconi is demanding new elections and unity from his supporters, but they may yet be averted as there are reports up to 20 of his senators could defect. The situation is very uncertain, however.
China may be on holiday this week, but the government there has announced new subsidies and support for their solar panel industry that is plagued with overcapacity and debt.
Japan is about to raise its sales tax, from 5% to 8% in what some see as a risky move for the Abenomics program. They need the revenue increase to deal with ballooning government deficits. But a similar strategy was tried back in 1997 an back then the move plunged their economy into recession. They are hoping this time its different.
There is an Australian RBA benchmark interest rate decision today at 5:30pm (Australia doesn't go on to daylight savings until this weekend). No-one is expecting a change, but the Aussie central bank has a habit of surprising markets. Still, there is unlikely to be a change at this review.
The NZ dollar starts today noticeably higher at 83.2 USc, 89.2 AUc, and the TWI is at 77.5.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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