Global sharemarkets traded up yesterday on signs politicians
involved in debt ceiling negotiations may be close to a deal
to reopen shuttered United States federal agencies and
prevent a damaging default on federal debt.
The NZX-50 closed up nearly 14 points at 4747.93 and the
Australian sharemarket traded higher.
Asian markets opened up, the oil price rose and transtasman
currencies strengthened against the US dollar.
Craigs Investment Partners broker Chris Timms said investors
were buoyed by encouraging signs politicians in the US might
soon reach a deal.
''The announcement that they are talking again, that they are
holding meetings and so forth has been taken as a
Investors appeared to have become slightly less concerned in
recent days about the possibility of a US debt default, he
''They wouldn't be happy about it, but generally, it would be
seen as a technical default in the sense that the Government
was able but unwilling to pay, and the net result would be a
temporary delay in payment to bondholders,'' he said.
The US Treasury estimated the US would reach its $US16.7
trillion ($NZ19.8 trillion) ceiling on October 17.
The plan under discussion between Senate majority leader
Harry Reid, a Democrat, and his Republican counterpart, Mitch
McConnell, would promptly end a partial government shut down
about to enter its third week.
The debt ceiling would be raised enough to cover the nation's
borrowing needs at least through to mid-February 2014,
Reuters reported, quoting a source close to the negotiations.