Stocks Drop as US Senate Too Far Apart on an Agreement

The benchmark index dropped as much as 0.8 percent after Senate Majority Leader Harry Reid rejected a House plan to halt the fiscal impasse and Senate leaders stopped talks on a bill that would fund the government through Jan. 15, 2014, and suspend the U.S. debt limit until Feb. 7. The Senate talks haven’t broken down, spokesmen for the chamber’s top leaders said.
The House plan, which Majority Leader John Boehner is still developing, contains policy conditions Democrats have previously rejected. The federal government shutdown is in its 15th day and U.S. borrowing authority will lapse Oct. 17.
The House plan, which Republican leaders presented to their members this morning, “can’t pass the Senate and won’t pass the Senate,” Reid, a Nevada Democrat, said on the floor today. Reid and Minority Leader Mitch McConnell of Kentucky had been closing in on an agreement.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza