JPMorgan: Prospects of US Government Reopening, Market Risk Pressure Easing

BlockBeats News, November 11th - Mohit Kumar, Global Economist at Jefferies, stated that the prospect of a U.S. government restart would eliminate multiple risks in the market, which should boost risk assets. "With the Senate passing a stopgap spending bill, a government shutdown is likely to end this week,"

Kumar pointed out in the report. He believes that once the position clear-out is complete, it will eliminate one of the obstacles to risk assets, but uncertainty remains around the Fed's policy. If subsequent data is not sufficient to prove a weak labor market, the Fed may postpone the rate cut in December.

According to data from the London Stock Exchange Group, the money market currently predicts a 64% probability of a 25 basis point rate cut by the Fed in December. (FXStreet)