Overnight roundup courtesy of Spreadex

Yet again, European shares are seen opening lower with the Federal Reserve’s bond tapering and the looming US debt ceiling deadline damps enthusiasm for shares. Asian markets were also in decline for a second day following worse than expected US consumer confidence figure which showed a slump in September to a four-month low. 

With today being the only day without a Federal Reserve member speaking, markets may pause for a brief period as investors weigh the prospects of a last minute deal to avoid the debt ceiling limit. A failure to lift the cap on what the government can borrow could see the shutdown of the US government which in turn would threaten the US sovereign rating. However, despite four consecutive days of losses, the S&P 500 and the Dow Jones remain just 2 percent from all-time highs, demonstrating the lack of concern over the ceiling limit.

Gold swung between gains and losses amid concern the US Federal Reserve will slow the pace of its monthly bond purchases before year end. WTI crude snapped four days of loses ahead of US data today which could show crude stockpiles dropped in the world’s largest oil consumer.