Weekly Commentary - U.S. Automatic Federal Budget Cuts and Impacts to Equity Markets
U.S. Congress failed to reach consensus on budget talk and USD 85 billion in indiscriminate spending cuts began to kick in. According to predictions from Democrats, the spending cut will cause air-traffic delays, meat shortages and furloughs for many federal workers. Financial markets were relatively calm last Friday, U.S. S&P 500 Index and Dow Jones Industrial Average rose by 0.23 percent and 0.25 percent respectively as spending cut will take effect gradually and investors are still looking forward for parties to make compromise. However, U.S. family may start to delay in shopping and save more for the uncertain future. The cut will take several weeks to spread the full impact across the country and weight on the equity markets, if there is no compromise in U.S. Congress within a short period of time.
Copyright ©2015. Alroy Financial Services Limited. All rights reserved. Member of Hong Kong Professional Insurance Brokers Association. Membership No. M-437. |
Follow Us: Show: Full Site | Mobile site |
|
The information of this page is for reference only; it does not constitute any selling purpose, solicitation of buying and recommendation for you to participate and complete any transaction. |