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Kontak Perkasa - Bloomberg (16/10) -- European stocks
declined from their highest level in almost four weeks as U.S. lawmakers
continued to discuss raising the federal government’s debt limit. U.S.
index futures gained, while Asian shares fluctuated.
Danone slid 4.4 percent after posting the slowest sales growth in 16 quarters and lowering its full-year forecast. LVMH Moet Hennessy Louis Vuitton SA dropped 5.6 percent as the world’s largest luxury-goods company reported revenue for the third quarter that fell short of estimates. The Stoxx 600 retreated 0.4 percent to 313.48 at 8:06 a.m. in London after yesterday rising to its highest level since Sept. 19. Standard & Poor’s 500 Index futures gained 0.3 percent, while the MSCI Asia Pacific Index slipped 0.1 percent. “The deadline is looming and still no deal to resolve the U.S. fiscal deadlock,” Ian Williams, a market strategist at Peel Hunt LLP in London, wrote in a note to clients. “Markets are growing jumpy again, not helped by Fitch placing its U.S. credit rating on negative watch.” House of Representatives Speaker John Boehner, a Republican, made a last-minute attempt to influence the outcome of the fiscal showdown with a proposal that would extend government funding through Dec. 15, rather than Jan. 15 as the Senate plans. With the U.S. borrowing authority due to lapse tomorrow, Fitch Ratings put the world’s biggest economy on watch for a possible credit downgrade, citing lawmakers’ inability to reach a deal. Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell have restarted negotiations to find a solution that would reopen the government and prevent a default. “Senator Reid and Senator McConnell have re-engaged in negotiations and are optimistic that an agreement is within reach,” a spokesman for Reid said in a statement. They had suspended their talks, while they waited for the House to act on Boehner’s plan. |
Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 3:07 PM
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