Experts expect the minimum impact of the market to close the new government

partial The government closing He started on Wednesday with Republicans and Democrats on a dead end around spending levels, which increased uncertainty about economic conditions and how financial markets will interact.

It is not clear when legislators will reach a compromise that allows them to end the closure, but experts expect that Financial markets It will not be relatively annoyed by the dysfunctional funding of the federal government in the meantime.

“The closure” offers a new layer of uncertainty for the markets, “said Adam Tereswist, the chief technician strategy at LPL Financial,” Adam Tirnkoyst, the chief technician strategy at LPL Financial, said that although the closure “offers a new layer of uncertainty for the markets,” he explained that “it was historically short -term, and as a result, it had a little effect on the economy.”

“Investors have generally looked at the budget -related disturbances, determining the priorities of corporate profits, the broader economic trends, and other total economic factors,” said Turnquist.

Golsby of the Federal Reserve says that the central bank has other data options if the closure breaks the economic reports

Turnquist explained that the United States has seen 20 closures in the past fifty years, and indicated that the average clouds during the operation was only -1.6 %, with the worst decrease in the decline by -6.1 % in 1979.

He said during the longest closure ever, which spanned 35 days from December 2018 to January 2019, S & P 500 More than 10 % gathered with the federal reserve amendment its policy, describing it as “a great example of how the overall factors of markets are more important than short -term political turmoil.”

Turnquist added that after the end of the previous closures with the age of the budget decision, “medium revenues for a month and three months for S&P 500 1.2 % and 2.9 %, respectively,” added Turnquist.

The government’s closure waving on the horizon: How does it affect the economy?

Brett Kinwell, the American investment analyst at Itoro, said that the investors “have learned to control the drama of the closure to a large extent, and display it as it Political situation Instead of the basic market risk, “although it indicated that the market may see a short stop differently from a long turmoil.

James McCane, the chief economist in Edward Jones, said that there may be “fluctuations in the increasing market as seasonal factors are united with an already unconfirmed macro background.” He added that although the dollar bonds and the US government have usually witnessed a boost during the past closure, but he said that “fatigue in the market about the ongoing political imbalance may confuse this response this time.”

The Federal Reserve Chairman warns of inflation is “going to the wrong road” as it comes to tariff

He also indicated that there may be some disturbances Government services This affects parts of the economy.

Macan said: “During the previous closure, the small business administration stopped some lending and investment programs, denying an important financing for small companies and limiting their ability to employ or invest. Likewise, the time taken to agree to infrastructure projects will increase, causing a costly delay.”

“We know that employment is unusually weak in the American economy at the present time, and these disturbances may make these Americans more than work to find a new job in the coming weeks,” he added.

The first negotiations to close the two parties on Capitol Hill after Bell’s financing was banned again

Anthony Esposetto, CEO of Ascalonvi Capital, told Fox Business that the standard S&P 500 index has risen on a clear basis during the past ten closure, including the current federal financing.

“On a clear basis, we see a positive return for the S&P 500 during these closure periods, and the return if you may exceed 10 % in a positive return,” he said.

Get Fox Business on the Go by clicking here

However, Esposito said that if this closure proves to be especially long and “we start with a less clear vision regarding the economy, and less clarity regarding the place where you will eventually become, how the budget will appear, then I think you can start retreating in the market – the participants may not be active sellers but they may not be prepared for buyers, and both will be the same as the same effect on the market.”