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The Dow varies 300 points with shutdown and oil deal



The Dow has jumped to 405 points Tuesday after politicians in the United States temporarily agreed on a plan to divert another government shutdown. The stocks also get help after deciding Saudi Arabia to cut oil production. The Nasdaq and the broader S & P 500 both reach 1.4%.
Congressional congressmen said late Monday they reached a principle agreement to prevent a slight shutdown by the government at the end of this week. The deal will not be final until Congress passes it and it is confirmed by President Donald Trump – leaving many rooms for a new development to disperse the agreement. But Wall Street is optimistic in the view that American lawmakers will avoid another crisis.

"The markets hate the uncertainty so it's a fascinating news that eliminates one of the major barriers to US economic growth and prosperity and better financial market conditions," says Chris Rupkey, chief financial economist at MUFG.

The last 5-week shutdown, which ended last month, was worth US $ 1
1 billion – $ 3 billion in economies that could not be recovered, according to the Congressional Budget Office. That is not a huge dent in America near- $ 2 billion economy. But the level of political overrun by Wall Street is concerned about the ability of politicians to agree on something potentially more serious: the rise of the United States debt ceiling.

In the coming months, lawmakers must vote to pay American debt debt. Otherwise, the United States may default on its loan repayments. That could signal that America will not pay its lenders, possibly sending a shock through the US Treasury market, which the government hopes to fund its programs and make up for the massive budget deficit .

that they will apply the United States credit rating if lawmakers will not raise debt ceiling, which will raise the amount of money the government has to pay on its debt repayments. Credit-rating agencies cut off AAA's perfect AA rating in AA + in 2011 as the government was about to lose debt.

The shutdown deal provides investors with hope that politicians will not shoot themselves on foot again when the stakes may be higher.

Oil grows

OPEC, the oil cartel headed by Saudi Arabia, has announced Tuesday that it will reduce production of 800,000 barrels a day. That neglects investors' concerns that a global economic slowdown continues to hurt the need, and oil producers are not doing enough to slow production.

Crude prices in the US have reached 2% Tuesday to $ 53.56 in a barrel.

Oil has risen over the last few weeks after sanctions from Venezuela, the United States, a major supplier of crude in the world. Iranian sanctions also support oil prices.

But crude production in the United States has increased in oil weight over the past year. However, oil prices may increase between 10% and 15% this year due to OPEC's cut and cut production, Francisco Blanch, head of research at Bank of America's global merchandise Merrill Lynch to Julia Chatterly on CNNi's "First Move" Tuesday. [19659006] Energy stocks have gathered. Hess HES ) at Devon Energy ( DVN
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