The possibility of a government shutdown are leading Stocks lower today and giving a boost to the Bond markets as investors rush into the safe haven trade. In the latest week there has been an influx of $4.5 billion into global Bond funds, backing up the flight-to-safety assertion.
In today's economic news, Personal Incomes rose by 0.4% in August versus the 0.3% expected and the most since February. The uptick in incomes pushed Personal Spending up 0.3%. The increase in incomes helped to boost Americans savings rate to 4.6% compared with 4.5% in July, though historically low.
Americans are feeling less optimistic in September than they were in August as the ongoing issues in Washington clouded the economic landscape. Consumer Sentiment fell to 77.5 this month compared to the 82.1 reading in August. The potential shutdown of the federal government could knock 1.5% from Gross Domestic Product if a shutdown were to occur. Within the report it showed that workers expect no increase in pay in the year ahead.
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