Morgan Stanley: The Day After

By Vishwanath Tirupattur, global head of Quantitative Research at Morgan Stanley

The Day After

Reports suggesting that the debt ceiling drama is inching toward a compromise agreement are good news indeed. The details emerging are still tentative, a final agreement is not yet in hand and, given the fraught state of politics in Washington, DC, legislative passage is not assured. That said, with the 'X-date' (when the federal government runs out of cash) fast approaching, tangible progress toward a resolution to avoid a US sovereign default should bring a sigh of relief on the outlook for the economy and markets.