The US government continues its
political standstill, with only a few days left to resolve the nation’s debt
A scheduled White House meeting for congressional leaders from both parties has been postponed to allow talks on raising the nation’s debt limit and to reopen the government. Obama also added that he saw “some progress” in the talks, ahead of Thursday’s deadline for the US to raise its $16.7tn (£10.5tn) borrowing limit or risk defaulting on its debt.
US Senate leaders have expressed optimism after a flurry of negotiations on raising the federal debt ceiling to avert a potentially disastrous default. The deal currently under discussion would fund the government until 15 January while raising the debt ceiling until early to mid-February. Senate Democratic Majority Leader Harry Reid told the chamber on Monday evening: "We've made tremendous progress”.
The UK’s consumer price index beat market expectations coming in at 2.7% instead of 2.6% this morning strengthening the pound in early morning trade
We have had mixed data from the euro zone this morning with the German ZEW survey of economic sentiment beating expectations to rise to 52.8 from 49.6. But the ZEW survey of economic sentiment for the euro zone as a collective fell shy of expectations. Despite the encouraging data from Germany, the euro has started to weaken off.
Looking ahead of the week, the US will still be focusing on resolving its debt ceiling lapsing on Thursday. UK unemployment rate and retail sales will be in focus and the euro zone are expecting their latest inflation figures.