U.S. shutdown risk looms over the stock market

The United States once again faced the threat of shutdown amid the lack of consensus on the new budget. If it happens, players in the stock market are waiting for losses, as it usually happens on the first day of its official entry into force, writes Profinance.ru.

Last weekend, the last chance to avoid a government shutdown failed in Congress. Disputes between Republicans and Democrats over the budget have been going on since last fall. In January, the parties managed to agree on temporary funding, but only until early March. On the second day, about 20% of the structures of the federal government will temporarily stop their work, RBC reports. This time the suspension may last longer than usual, Profinance notes.

As history shows, on the first day of most of the past shutdowns, stocks suffered losses - this was the case in 8 out of 14 cases. A few days later there was a recovery in quotes. Given concerns about the Fed's plans to cut interest rates, the players' sentiment may seriously deteriorate, the portal warns.