US stock futures open lower as talks in Washington drag on

City A.M. Reporter
US stock index futures slumped last night after weekend negotiations to avert a US debt default ended with no agreement.

US stocks had generated two days of strong gains in advance of the weekend on hopes a deal to raise the $16.7 trillion federal borrowing limit was near.

But although Senate Majority Harry Reid said last night that he was engaged in negotiations with Republican minority leader Mitch McConnell and was “confident” they could resolve the fiscal crisis before Thursday’s deadline, the S&P 500 e-mini futures fell 0.9 per cent in minutes following its open.

On Friday a survey showed that US consumer sentiment deteriorated in October to its weakest in nine months as the shutdown undermined Americans’ outlook on the economy.