Fiscal impasse widens as focus turns to US Senate

[WASHINGTON] Senate leaders of both parties began negotiations to avert a US default even as senators blocked legislation to prevent one and talks between the White House and House Republicans hit an impasse.

With a partial government shutdown in its 13th day and a lapse in borrowing authority four days away, the best prospects for a deal shifted from the House to the Senate, where Majority Leader Harry Reid and Minority Leader Mitch McConnell held their first negotiating session since the shutdown began on Oct 1.

Democratic lawmakers warned on Saturday that the lack of movement this weekend may have an effect on financial markets when they open today.

"This is playing with fire," Senator Charles Schumer, a New York Democrat, said. "I worry on Monday when the American markets open" whether "the stock market will go dow…