US: Markets to keep an eye on the debate in Congress - BBH

The US economic calendar is light, with only December wholesale inventories on tap as the markets will keep an eye on the debate in Congress, where the spending authorization has expired but some rearguard action is needed, according to analysts at BBH.  

Key Quotes

“It is not clear, even now, whether the Senate measure will be accepted by the House.  The compromise lifts the debt ceiling and would boost defense and non-defense spending by $300 bln over the next two years (which includes disaster relief).  After recently approved tax cuts that by themselves would lead to a larger deficit and more debt, now some in Congress are balking at boosting spending because of the deficit impact.”