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The U.S. government has begun its first partial shutdown in 17 years after a day of back-and-forth between the House and the Senate that resulted in Congress failing to pass a budget to fund the federal government.
On Monday afternoon and the later in the evening, the Senate rejected House measures that tied government funding to a one-year delay to provisions of Obamacare.
The House then called for a bipartisan committee with the Senate to try to forge an agreement, but Democrats rejected the overtures as too late.
U.S. and European stock futures don't seem to be too perturbed, with the Dow +0.2%, the S&P +0.3% and the Nasdaq +0.3%. The Dax is +0.1%, the CAC 40 +0.1% and the FTSE 100 +0.1%.
U.S. 10-year Treasury yields are +2bps to 2.64%.
Gold is +0.1% to $1328.70, while oil is -0.3% at $102.05.
In Asia-Pacific Japan +1%, India +0.4%, Australia +0.1%.
The looming partial U.S. government shutdown has stock futures off about 0.8%.
Europe's off 1%, with Italy -1.8% as its government teeters on the verge of collapse. This is business as usual though - post-WWII, Italian administrations are nearly always in a state of collapse. The debt crisis seemingly contained, any reverberations from this should remain within Italian borders.
The 10-year Treasury yield is off a basis point at 2.60%.
In commodities, gold is down a hair and crude oil is off 1.3%.
S&P 500 (SPY) futures -0.8% on mounting concerns of a partial U.S. government shutdown after the House voted to tie federal government funding to a halt on key provisions of Obamacare. Adding to worries is what may be the imminent collapse of the Italian government.
DJIA (DIA) futures -0.7%, Nasdaq 100 (QQQ) -0.6%, Russell 2000 (IWM) -0.9%. Italian FTSE MIB futures (EWI) -1.2%.
Japan's Nikkei is off 2% in the early going and Australia's ASX 200 is down 1%.
Gold's little-changed and WTI crude oil is down 1.1% to $101.72.
Wal-Mart's quick tumble as it reportedly cuts orders due to high inventories is hitting the major averages, with the Dow (DIA -0.3%) and S&P 500 (SPY -0.2%) giving up small gains to move into the red, and the Nasdaq 100 (QQQ -0.2%) coming along as well.
S&P 500 (SPY +0.6%), DJIA (DIA +0.4%), and Nasdaq 100 (QQQ +0.6%) after the Fed surprises by not announcing any taper of its asset purchase program.
The 10-year Treasury note rises nearly a full point, the yield down to 2.78%. TLT +0.4%.
Precious metals soar, Gold (GLD +2.7%), Silver (SLV +2.9%), and the dollar (UUP -1%) heads south.
Money line from the FOMC statement: "The Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases." Also noted is the "federal fiscal retrenchment."
Stock index futures are marginally in the green ahead of the FOMC decision coming at 2 ET. Many expect the Fed to announce the commencement of the taper, but stocks seem to have gotten past that worry awhile ago, and the S&P 500 is within a few points of taking out its all-time high. Bonds are a different story.
Europe's moderately higher and Asia closed mostly higher overnight.
The 10-year Treasury yield is flat at 2.86%, while gold has dipped just below $1,300 per ounce.
The DJIA (DIA) portfolio managers sold Texaco in 1997 and Chevron in 1999 as oil was approaching a 30-year low, and replaced them with H-P and Microsoft as the tech bubble was about to peak, writes Bill Smead - advising a contrarian take on the Dow's latest changes.
Visa (V) "might be the most popular financial stock on the planet, and Nike (NKE) "highlights the absurd popularity-chasing nature of the DJIA."
"Will history repeat itself and reduce the success of this actively managed index," he asks.