The U.S. debt ceiling is the main concern in markets after averting fiscal cliff at the end of December 2012, which fueling markets with uncertainty, at the time where corporate earnings season was kicked off alongside with International Monetary Fund outlook!.
Investors’ keeps their eyes open on debt ceiling development particularly with the approaching of February , where Republicans and Democrats are negotiating over it to reach a deal which fuel the markets with uncertainty about the future of the U.S. economy and its journey to the recovery.
Republicans will offer a new proposal if Congress refuse to raise the debt ceiling, which will reduce of liquidity at the Treasury and delay the commitments.
Senate Pat Toomey and more than 30 Senate colleagues will offer a new proposal that require revenue going to Treasury first be used to pay interest on U.S. debt, Social Security benefits and active-duty military pay.
If there`s not enough revenue available to cover those payments when they`re due, the bill would also give limited authority to Treasury to raise the debt ceiling just enough to borrow the difference between revenue on hand and what`s owed on the priority payments.
International Monetary Fund (IMF) will release their global growth outlook amid of global challenges that delay the recovery worldwide, IMF may revised the growth outlook negatively particularly for European countries due to austerity measures and its impact on confidence and spending.
IMF revised global growth outlook in October, where IMF expect a growth by 3.6 percent in 2013, from 3.9 percent, noting that 3.0 percent is the neutral point between contraction and growth.
Furthermore, IMF expect a growth in the U.S by 2.1 percent in 2013 instead of 2.3 percent, while IMF forecast Chinese growth by 8.2 percent in 2013, while UK may grow 1.1 percent this year.
Christine Lagarde, Chief executive officer of IMF said earlier: "Forceful structural reforms and broad-based domestic support will be needed to meet challenges”.
IMF outlook, debt ceiling developments and corporate earnings season will keep investors concentration during this week which may affect the trading volumes.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.