The first partial shutdown of the US government in the past 17 years resulted in stock markets rising while gold and Treasury bills fell. The market indicators show that the shutdown would only be temporary.
The US dollar fell to an eight month low as against major currencies as concerns on the shutdown would delay the US Federal Reserve's quantitative easing policy on its stimulus programs.
The impasse as to the spending bill at Congress would now result in one million US federal workers being placed on unpaid leave. Without a new funding bill soon made, the shutdown would only extend but the sooner a law is hammered out, the impact would be manageable for the US economy.
Last Monday, share values fell as the deadline came without any progress on the law being passed. Many market players though viewed any withdrawals as buying opportunities as the deepest losses were trimmed last Monday.
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