Budget deal sets stage for robust Q4 on Wall St

But the 16-day shutdown in the US may leave a visible scar on its economy

LATE Wednesday night, the US Congress forged a bipartisan deal to end the two-and-a-half week US government shutdown, avert a default on Treasury bonds and set up a strong fourth quarter for the US economy and stock market.

The budget deal, which passed the House of Representatives by a margin of 285-144 and had even stronger support in the Senate, is extremely temporary in nature. It will keep the government services running until Jan 15, when Republicans and Democrats will have to agree on a new tax-and-spending package. Congress will also have to vote by Feb 7 on whether to raise the debt ceiling or default on bond payments.

Yet, this limited deal confirms investors' belief that not even the...

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