It is October 14 and we are now only days away from what many US politicians will have you believe is Armageddon Eve. No-one in the market truly believes that the US government will default however, in the context of the partisan noise still coming from both Republicans and Democrats, signs of stress are beginning to become a bit more pronounced in markets. We are into week three of the US Government shutdown but it doesn't seem we are any closer to reaching a deal than we were a week ago and the 17th October deadline is fast approaching.
That said, markets closed last week on a bullish note which will continue today with equities higher and bond yields lower. The Aussie is the only casualty (down about half a cent from last Friday’s close) but due to poor Chinese Trade data over the weekend and not due to the US government stalemate.