Stock markets all in the negative. Decision is expected by midnight today: Republicans and Democrats need to discuss whether to integrate or not the cost of Obamacare. On October 17, risk of hitting the U.S. debt ceiling.

Hong Kong (AsiaNews) - Asian stock markets are all negative today, in fear that the U.S. is heading towards the closure of government services.

Shares in Japan, Hong Kong, South Korea and Australia are dropping. The Nikkei in Tokyo fell to less than 1.7%, Hong Kong to minus 1.2; Seoul to minus 0.7. Taiwan and Singapore are also negative.

According to analysts, the markets are expressing concern about the decisions of the U.S. Congress. The United States must renegotiate a new budget - which includes the new health care costs desired by Barack Obama with the system Obamacare - by midnight today. If the politicians are not in agreement, the government will shut down its services and at least one third of its more than 2 million employees will not work. Certainly could close national parks and museums, offices, public service visas, passports and pensions would suffer delays. Only urgent utility services, such as air traffic control and health inspections, would not be stopped.

The last government shutdown occurred for 21 days from December 1995 to January 1996. The current standoff is only a prelude to what will probably happen in mid-October when the senate and representatives must vote to increase (or stop) the ceiling for public expenditure.

The Treasury Secretary has already warned that on October 17 the U.S. will hit the debt ceiling, leaving the government with only half the money needed to pay its bills.

 

 

• Asia
• USA
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• budget
• debt
• ceiling