01/10/13 – Market Movements
The U.S. government partially shut down its services today following the political deadlock. The market reaction has nevertheless been quite passive. Manufacturing data from the U.S. has conversely been more positive and it has shown that manufacturing expanded in September at a faster pace than forecast. The data suggests that U.S. factories will contribute to a larger portion of the economy’s expansion.
Data from the Eurozone has shown that the unemployment rate in August was 12% for a second month in a row, just below the high of 12.1% in June and May. In addition, a report showed that manufacturing activity in the Eurozone rose for a third month in September.
Meanwhile across the globe in Japan, Shinzo Abe has proceeded with a sales tax increase to curb the huge debt burden. However, this could prove harmful to Abe’s growth plans and also lose him some support in terms of voters.