US equity markets, aided by JPY carry, spiked in the last few seconds of trade today after an NYTimes report suggested there was a deal to end the shutdown on the table.
The plan, a compromise between Senator Mitch McConnell, the majority leader, and Senator Chuck Schumer, the Democratic leader, offers the first hint of a path out of the partial shutdown, which is now in its fifth week and has left 800,000 federal workers without pay. The two announced it Tuesday afternoon on the Senate floor.
“People are saying isn’t there a way out of this mess, isn’t there a way to relieve the burden on the 800,000 federal workers not getting paid, isn’t there a way to get government services open first and debate what we should do for border security later?” Mr. Schumer said. “Well, now there’s a way.”
This sent stocks spiking.
However, shortly after the close, McConnell’s office issued a statement denying the NYTimes report, saying it is inaccurate and that President Trump’s stance on the shutdown is unchanged. There is no change to Trump’s stance on the need for wall funding to open government.
And USDJPY dumped it all back and stocks began to fade (futs closed)…