Equities end week on positive note

After the political haggling and disagreements this week, equity traders have decided to take an optimistic stance.

However, despite screens being blue at the moment, market sentiment on Monday morning will be shaped not by the last few hours of trading, but by the comments and developments that come from the US between now and then.

So far this week no real progress has been made towards an agreement to end the current shutdown of the US government. The shutdown in itself is not too much of an issue, but rather Barack Obama’s perceived inability to manage the two parties. The resulting malaise has created a growing fear that the bigger picture will be lost when it comes to tackling the debt ceiling, and political point-scoring at the cost of the greater good of the country will continue. We would all like to believe that politicians are not so petty as to risk the stability of the US over such things, but experience has taught us otherwise.

Although normally the markets would be closely following what Federal Open Market Committee voting members William Dudley and Jeremy Stein have to say, their comments and thoughts will instead be overshadowed. Let’s hope that this is not the case next week. 

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