USA Debt. Hang on to your hats

Loughton_Monkey

Dow having finished at 12,681 on Friday, pre-trading has just started [11 p.m. Sunday]. 12,539 just at the minute.

Not exactly a bloodbath, yet, but let's see the official opening tomorrow.

FTSE100 dropped 74 immediately after opening, too. A mere 1.2% down, but I expect it to get a bit rockier before August 2nd while the Obama/Boehner circus remains in town.

I fully expect Obama to have to back down and forget tax rises, in favour of doing the obvious and spending 'like drunken Gordon Brown at the Sales'.

King_Of_Bling

Loughton_Monkey wrote: »

Dow having finished at 12,681 on Friday, pre-trading has just started [11 p.m. Sunday]. 12,539 just at the minute.

Where do you get these figures from this time of night? Have the Far East markets even opened?

The_pc_tech

Bloomberg TV on Freesat/Sky or the web?

Loughton_Monkey

King_Of_Bling wrote: »

Where do you get these figures from this time of night? Have the Far East markets even opened?

CFD trading platform. It shadows 'real' trading and mirrors the 'real' prices.

Timingthemarket

Futures markets

http://www.cmegroup.com/trading/equity-index/us-index/e-mini-sandp500.html

Ark_Welder

Futures markets, etc, frequently suggest how the markets will open but aren't a truly reliable indicator.

Tokyo open will tell more about genuine sentiment, 0100 BST, although the real indicator will be bond markets and not equities.

King_Of_Bling

Loughton_Monkey wrote: »

CFD trading platform. It shadows 'real' trading and mirrors the 'real' prices.

So, what are you doing? Going short on the Dow?

Loughton_Monkey

King_Of_Bling wrote: »

So, what are you doing? Going short on the Dow?

No. I don't trade except when I'm so bored, and have a fixed view on something. Put a £1 on and go out for the day. Interesting to come back and see if I've lost [stopped out] £20, or whether I'm £30+ in the money....

I just like to have the platform running so I can understand what it does every time a new Jobless figure is announced, or Osborne opens his mouth....

Loughton_Monkey

So China finished >3% down!

I expect they're factoring in the need to dip into petty cash to help USA out.

westendguy

Does anyone seriously think the US will effectively commit suicide over something fully within their power to prevent, by not reaching a deal?

BBC this morning suggests there may be a few more days of brinkmanship before a deal is eventually reached.

But if the markets do get fit of the vapours someone will no doubt make a killing.

Ark_Welder

Loughton_Monkey wrote: »

So China finished >3% down!

I expect they're factoring in the need to dip into petty cash to help USA out.

More likely it's a reflection that interest rates in China need to rise to combat their inflation.

The Nikkei finised less that 1% down and spent the whole day around the same level

[edit]
The falls in China are more to do with the rail crash that happened on Saturday. Shares in rail companies and property companies in cities serverd by rail being the main fallers - FT.