My must read of the day is "European Markets Drift Lower," in the Wall Street Journal:
European stock markets continued to drift lower Tuesday as the political stalemate in Washington persisted in spreading unease.
The lack of progress in resolving the weeklong partial shutdown of the federal government and looming debate over the U.S. debt ceiling has left investors reluctant to make any big bets and sapped trading volumes.
The Stoxx 600 index, which includes a wide variety of European stocks, was 0.4 percent lower in the middle of the European session. London's FTSE 100 fell 0.7 percent, while Germany's DAX lost 0.2 percent.
The stalemate surely affects markets, but the doom and gloom rhetoric that was ramped up this weekend is likely making the economic situation worse.
The rhetoric of the president and his administration is melodramatic. Think about Federal Reserve Chairman Ben Bernanke. Whenever he speaks, markets move. It’s the same thing with the president and leaders in his administration. And right now, when the president speaks, the markets move in a bad direction.