Government shutdown odds spike: both parties see potential upside

Recent developments in Washington have sharply increased the likelihood of a partial U.S. government shutdown. Both Republicans and Democrats failed to agree on funding, with two competing bills falling short in the Senate, unable to reach the required 60 votes. This leaves the country on the brink of a shutdown starting October 1.

Source Yahoo Finance

President Donald Trump canceled a planned meeting with Democrats, insisting he would only return to the table if they “become realistic.” Democrats, however, argue that it is the president who is steering the country toward a “painful government shutdown.”

Analysts at Signum Global Advisors believe the base case now is that the U.S. government will indeed shut down on October 1. Markets and Wall Street may begin reacting as early as Monday, when lawmakers return with less than 48 hours left to avert a shutdown.