Friday 18 October 2013

US government shutdown ends, S&P 500 hits new high

The partial US government shutdown came to an end on Thursday after President Barack Obama signed a bill to raise the debt ceiling and restore government.

Relieved investors sent the US stock market to a record high. The S&P 500 rose 0.7 percent to close at 1,733.15 on Thursday.

The end of the government shutdown means a backlog of government economic indicators will be released soon.

In the meantime, reports on Thursday showed that the US economy has maintained momentum so far, with initial claims for state unemployment benefits falling 15,000 to 358,000 last week and the Philadelphia Federal Reserve Bank's business activity index slipping to 19.8 in October from 22.3 in September.

Meanwhile, in the UK, retail sales rebounded 0.6 percent in September after having fallen 0.8 percent in August.

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