When markets reopen on Sunday evening, things might be interesting.
That's because two out of the three countries with the largest debt markets in the world are experiencing political crises right now.
Pretty much everyone is aware of what's happening in the U.S., where the government is going to shut down Monday night, provided there's not some last-minute save to keep things operating. It doesn't look like there will be.
At issue is the fact that the GOP refuses to pass a budget unless there's some sort of cancellation, defunding, or delay to Obamacare. Obviously, Democrats won't support such a bill, and Obama would never sign it.
Meanwhile, in Italy, the entirety of Silvio Berlusconi's Popolo della Libertà, or PDL Party, has indicated that they will resign from government, threatening to collapse the fragile coalition that was established after February's election. So it's unclear what happens now, and if a new coalition can be formed, but it's not good.
So you have the world's largest government bond market (the U.S.) and the world's third largest (Italy) both experiencing political crises on the same weekend.
See Also:Markets Are Lower AgainMarkets Are Going NowhereFutures Are Dropping