Debt agreement cheers investors

 

At noon, the Stock Exchange of Thailand index rose 14.28 points or 0.98 per cent to 1,478.66 points, on turnover of Bt24.98 billion.

The Thai baht also opened higher. At 8.27am, it was 31.15 per US dollar, showing a 0.37 per cent increase from the previous closing and a 0.43 per cent increase from the end of September. 

The Thai currency also gained 0.33 per cent and 0.80 per cent against the euro and Japanese yen, to 42.17 and 31.53, respectively. 

In the US, the Dow Jones industrial average jumped 206 points. Bond investors celebrated, too.

The Congress reached the budget agreement Wednesday, which cheered investors and removed the threat of a catastrophic debt default that could have triggered another recession.   

International Monetary Fund Managing Director Christine Lagarde, who said several times last week that the US fiscal impasses must be solved, welcomed the move.

“The US Congress has taken an important and necessary step by ending the partial shutdown of the federal government and lifting the debt ceiling, which enables the government to continue its operations without disruption for the next few months while budget negotiations continue to unfold," she said in a statement. 

“Looking forward, it will be essential to reduce uncertainty surrounding the conduct of fiscal policy by raising the debt limit in a more durable manner. We also continue to encourage the US to approve a budget for 2014 and replace the sequester with gradually phased-in measures that would not harm the recovery, and to adopt a balanced and comprehensive medium-term fiscal plan.”