Traders edgy ahead of the budget row

HONG KONG] Asian markets mostly rose Friday after another positive week across trading floors but investors’ desire for more buying was being tested by profit-taking and worries about a possible US government shutdown.

Wall Street came off record highs to end lower as Washington lawmakers bicker over a federal funding deal, which must be passed by midnight on Friday US time.

The House of Representatives passed a bill on Thursday but there are increasing concerns the Republicans do not have enough votes in the Senate to send the budget to Donald Trump’s desk.

Failure to find agreement – with Democrats looking for concessions on immigration – would see various parts of the government shut down. Mr Trump told reporters a closure “could very well” happen.

“As usual, the focus is back on Washington,” said Stephen Innes, head of Asia-Pacific trading at Oanda.

“Of course, a government closure will have minimal impact on the US economy and the sun is sure to rise on Monday, but the markets will temporarily wobble in predictable unthinking fashion if lawmakers fail to table a last-minute agreement.”

The Business Times

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes