Here’s the market reaction to the shutdown of (some of) the US government:
- Benchmark US 10-year Treasury yields rose 0.05 percentage points immediately
- The dollar index fell 0.4 per cent immediately
- US equities dropped 0.6 per cent in the build-up yesterday, but the fall was still less than the 0.73 per cent fall in developed world equities.
- The e-mini S&P 500 futures contract is up 0.4 per cent since the shutdown took effect at midnight in Washington
All of which suggests that investors really aren’t that bothered. Here is conventional wisdom on why: Read more