2 Oct 2013

Stock broker says market expects US shutdown won't last

7:20 pm on 2 October 2013

A New York stock broker says the markets think the Republicans will be shamed into passing bills to allow government programmes to resume and to raise the United States' debt ceiling so the nation can honour its debts.

Certainly, investors in US stocks remained calm after the first day of the Government's partial shutdown, with the key Standard & Poor's 500 Index rising nearly 1%.

Congress missed a midnight deadline to agree on a spending bill, putting more than 700,000 federal employees on unpaid leave.

Managing director and partner at HighTower Advisors in New York, Jordan Waxman, says if the Government shutdown lasts a long time, the stock market will probably start to decline.