The US government budget crisis weighed heavily on investors after President Barack Obama said Tuesday he would not negotiate with the Republicans under the threat of “economic chaos.”
Investors are still hopeful Congress can avert an unprecedented US government default by agreeing to lift the debt ceiling before an October 17th deadline.
“Any sane person obviously believes the US isn’t going to default. That would cause an earthquake in financial markets around the globe,” Laurence Booth, a finance professor at the University of Toronto’s Rotman School of Management, said in an interview Tuesday.
But with the US government shutdown entering its eighth day Tuesday, markets are becoming increasingly worried that an agreement will be reached in time.
Click here for seven things you need to know about the US budget crisis courtesy of The Star.