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Tedious repetition

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  • The US government shutdown shows few signs of ending. With 'negotiations' yesterday just a tedious repetition of existing positions this could last a couple of weeks. Perhaps the US might reconsider its declaration of independence? Government from London might be preferable to a government vacuum.
  • US data becomes ever more limited. ADP payrolls showed softness yesterday, but whether a result of weaker underlying economics or just an anomaly is unknown and unknowable. Services PMI and initial claims make an appearance today.
  • The Chinese services PMI offered strength, which can be taken as a good signal on the domestic economy (if one trusts the data) but which has a very limited read through to the rest of the world (given it is not an especially globalised area of the economy).
  • Euro and UK service sector sentiment numbers are due the UK (which could perhaps claim one of the world's most globalised service sectors) is expected to remain very strong. Three Fed speakers appear in the US and Euro retail sales are released.

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