October 14, 2013- Stocks Look to Trade Lower as US Default Looms

After deal hopes created a flutter in the markets in the past two sessions, the resolve of traders is being tested, as lawmakers haggle over a deal that can avert default by the world's largest economy. The major U.S. index futures point to a notably lower opening on Monday. With very little economic catalysts to impact trading, the pre-occupation of the markets is likely to be on the efforts on in Washington to clinch a deal on the debt ceiling. The reporting season is expected to pick up momentum over the course of the week. Earlier in the global trading day, Asian stocks ended mostly lower, while the European markets are also trading lower. The Dow futures are declining 98 points, the S&P 500 futures are moving down 11.20 points and the Nasdaq 100 futures are retreating 13.75 points. U.S. stocks closed mixed in the week ended October 11th, as traders reacted to signals arising from Washington concerning the progress towards an agreement to end the uncertainty surrounding the raising of the U.S. debt ceiling. Manufacturing, housing and Fed speeches are set to predominate proceedings in the unfolding week. With the government shutdown continuing, some of the data, especially from the Commerce Department, is unlikely to be released.