US Futures followed European bourses lower, as political gridlock in the United States worsened.
Whether its the lingering European debt crisis, or the struggle for the U.S congressional committee to reach an agreement on deficit-cutting measures, futures are appreciably lower this morn. The deficit-cutting congressional super committee leaked info that everyone knew: It will fail to reach agreement on federal budget savings.
If your concern is truly the deficit, by some measures, gridlock may ultimately be productive. Between the Super Committee failure and the expiring Bush tax cuts, 7.1 trillion dollars of the US deficit will be resolved, if only Congress does nothing.
However, the political dysfunction has investors, both domestic and overseas, concerned.
More shortly . . .