US markets recover as lawmakes near deal - ZENMoney

In US markets, Major Indices rose as lawmakers neared a last-minute deal to prevent the US from defaulting on its debt. The Federal Reserve said in its Beige Book report that US growth continued to chug along at a "modest to moderate pace" in September and early October. The indices fell on Tuesday's trade as the impasse over the debt ceiling in Washington continued with no sign of progress toward a resolution. Index futures indicated continued pressure after Fitch Ratings placed the United States' 'AAA' rating on rating watch negative, citing the debt ceiling gridlock.

On the European front, the British Bench mark rose as the Republican leader of the US House of Representatives was said to agree to a Senate proposal to increase the government's debt limit. Consumer stocks lagged broader market gains after a handful of weak updates from major European producers. The indicies closed in green during Tuesday's session on hopes that aUS budget deal will be announced soon.A better than expected economic data coming in from Euro zone supported the indices further.

Nikkei opened on a gap up note during Thursday's session due to overnight gains in the US markets after a long-awaited budget deal to raise the debt ceiling and avert a debt default was passed by Senate lawmakers. A weaker Yen against US dollar supported the rise in the indices further. The indices opened on a negative note and seesawed between gains and losses during Wednesday's session as the US government shutdown stretched into another day and as traders digested news that Fitch is considering a downgrade of US sovereign debt.A strengthening US Dollar against Yen supported the indices.

Source : Equity Bulls

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