IIFT Daily Note with Peter Brown

US discovering ‘Kicking the Can’

Posted by:  |  Time: 7:28 am  |  Topic:
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Something Europe is great at is now the big possibility for a US solution. We are now likely to get a deal that will raise the debt ceiling until February. The outcome will be a few months of solace followed by a re-run of the last few weeks. In this environment it is unlikely the Fed can ‘taper’ so the stock market will like it. For the longer term it is not good, the biggest economy in the world with no plan for fiscal adjustment.

S&P reached 1710 last night, bar a last minute shock we are headed back toward the year’s high. We need to see the reaction to the final solution but expect a further bounce to the topside.

Levels today are  Euro 1.3600  1.3525   S&P(DEC) 1710  1700  Wall St (DFB) 15340  15240


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