Euro traded higher against the U.S. dollar , due to the budget debates in the United States . Note that the focus of market participants are still directed to the U.S., where the government still has not resumed work in the absence of the adopted budget for entered a new fiscal year. Both sides continue to hold talks tough position and do not compromise , which ultimately could threaten the economic growth of the world 's largest economy . The situation in the U.S. dollar keeps under pressure , which showed a moderate decline against major currencies.

In general, the situation with the budget issues in the United States will continue to dominate the market in the near future . It will be added to concerns about the need to raise the debt ceiling , which will continue to put pressure on the U.S. dollar.

We add that the rumors about reaching an agreement in the U.S. for 6 months, which may put an end to " shatdaunu " and lead to an increase in the debt ceiling , walk from the 2nd half of the European session , stimulating the dollar, but since they have not been confirmed again the dollar has lost all its past earned the position .

The dollar fell against the yen , reaching with nearly two-month low , as Republicans and Democrats in the United States remain in their positions in opposition to the budget , and the partial termination of the U.S. government continues the following week.

On Sunday, Speaker of the U.S. House of Representatives John Boehner said that he can not go on government funding or an increase in the debt limit without the related negotiations on a broad spending cuts . This differs from the earlier statements Bonera - it was reported that he intends to avoid a default. Treasury Secretary Lew on Sunday said that the Congress was "playing with fire " if not increase the limit of public debt to 17 October.

Add that to the dynamics of trade has also affected the monthly report , which was published by the Central Bank of Japan. He showed that , according to forecasts , industrial production will continue to grow moderately in the coming months.

The report also noted that both public and residential investment is expected to continue upward trend, while business fixed investment will expand at a moderate pace , as the volume continues to increase corporate profits .

Meanwhile, the Bank of Japan has confirmed that private consumption is likely to remain stable, which will support the improvement in employment and an increase in revenue.

We also add that the Bank of Japan is forecast exports will mainly grow at a moderate pace background improvement in overseas economies.

The Canadian dollar fell against its U.S. counterpart after data on the number of building permits were significantly worse than expected , which increased the pressure on the foreign exchange market amid worries about the financial situation in the U.S. , as well as the prospects for global growth .

Data from Statistics Canada show that in August, the number of building permits fell to a record high , recorded in July , which was associated with a decrease in commercial projects, such as retail stores and office buildings.

Note that the total number of permits fell in August by 21.2 % to 6.34 billion Canadian dollars ( 6.14 billion U.S. dollars ) to 21.4 - percent increase in July. Economists had forecast a decline of only 2.4%.

In addition, it was reported that permits for non-residential construction fell by 37.9 % to 2.43 billion Canadian dollars against 3.91 billion dollars last month, while commercial projects fell by 45.8 % to 1.40 billion Canadian U.S. . Add that industrial permits fell 1.2 % to 526 million Canadian dollars , after rising 17.7 % in July , institutional permits fell 36.7 % to 507 million Canadian dollars, and permission for residential real estate fell by 5 , 4 % to 3.91 billion Canadian dollars in August. Note also that the number of housing permits fell 3.0% to 2.17 billion Canadian dollars for projects such as apartments and condominiums, fell by 8.3% to 1.74 billion Canadian dollars.

European stocks dropped to their lowest level in four weeks as U.S. House Speaker John Boehner ruled out raising the federal government’s debt limit without setting preconditions.

The Stoxx Europe 600 Index slid 0.3 percent to 308.93 at 4:30 p.m. in London, after earlier falling as much as 1 percent. The gauge slipped 0.7 percent last week as the U.S. began its first partial government shutdown in 17 years on Oct. 1.

Boehner, the Republicans’ leader in the House of Representatives, continued to demand changes to President Barack Obama’s health-care act before agreeing to extend the borrowing authority. The Treasury has said it will exhaust measures to avoid exceeding the $16.7 trillion debt ceiling on Oct. 17. If that happens, the U.S. will run out of money to pay all of its bills at some point between Oct. 22 and Oct. 31, according to the Congressional Budget Office.

“We are not going to pass a clean debt limit,” Boehner said in an interview on ABC yesterday. “The votes are not in the House to pass a clean debt limit.”

Republican and Democrat lawmakers continued to clash over the emergency budget needed to end the shutdown. The move has placed thousands of federal employees on unpaid leave and closed down some services.

Obama has said he won’t negotiate over funding the federal government or raising the debt ceiling. The President has argued that the Republican-controlled House should not use either issue, which he described as basic functions of Congress, as points of leverage.

National benchmark indexes retreated in 14 of the 18 western-European markets.

FTSE 100 6,437.28 -16.60 -0.26% CAC 40 4,165.58 +1.33 +0.03% DAX 8,591.58 -31.39 -0.36%

Burberry dropped 1.4 percent to 1,605 pence after CEO Angela Ahrendts told Les Echos that “this Chinese slowdown is perhaps not an accident, but the new given.” The Asia Pacific region accounted for 39 percent of the company’s sales in the 12 months through March 2013.

SAP declined 2.3 percent to 52.85 euros. The world’s biggest enterprise-software company, along with Cisco Systems Inc. and Google Inc., has held talks to buy all or part of BlackBerry, Reuters reported, citing unidentified people familiar with the matter. The Canadian phonemaker had asked for expressions of interest from potential buyers as an alternative to the tentative agreement it reached with a financial group led by Fairfax Financial Holdings Ltd. on Sept. 23. Reuters said that SAP, Google and Cisco declined to comment.

Marks & Spencer Group Plc (MKS) declined 2.8 percent to 480.1 pence after Credit Suisse Group AG estimated that the U.K. food-and-clothing retailer’s same-store sales fell 1.5 percent in the second quarter of its financial year. The brokerage had forecast a 0.5 percent increase. Marks & Spencer reports its first-half results on Nov. 5.

Solvay gained 1.3 percent to 108.85 euros after saying it will buy Chemlogics for $1.35 billion in cash. The acquisition will generate cash and earnings in its first year, according to a statement by the Belgian maker of gelling agents used in hydraulic fracturing.

European Aeronautic Defence & Space Co. rose 2.2 percent to 50.30 euros after its Airbus SAS subsidiary won its first order from Japan Airlines Co.

Oil prices traded mixed , while demonstrating little change . Note that earlier today the price of Brent crude oil fell more than 1 percent , having fallen while below $ 108 per barrel , as oil production in the Gulf of Mexico resumed, while concerns about the "shut down " the U.S. government's clouded prospects for demand.

Note that Tropical Storm Karen has meant that many miners were forced to close the oil for nearly two -thirds of its platforms in the Gulf of Mexico last week. But after a Saturday level of risk has been lowered , many platforms have begun to resume their work.

As for the budget negotiations, which many economists are increasingly worried that it might hinder the country to raise the borrowing limit until October 17 , which increases the possibility of a sovereign default . Note that House Speaker John Boehner said the Republican-led House will not vote for raising the U.S. debt ceiling , if the agreement does not include other provisions .

Boehner said that the country could default if Obama does not come to an agreement. But he said he did not want of default .

The Obama administration has said it will not negotiate with Republicans to finance the government or raise the debt ceiling , arguing that these issues are part of the core functions of Congress and should not be used as leverage .

Obama said in an interview with Associated Press, that the Congress is likely to agree to raise the nation's debt ceiling to 16.7 trillion . dollars , " while " in order to avoid default.

The cost of the November futures on U.S. light crude oil WTI (Light Sweet Crude Oil) fell to $ 103.33 a barrel on the New York Mercantile Exchange.

November futures price for North Sea Brent crude oil mixture rose 25 cents to $ 109.45 a barrel on the London exchange ICE Futures Europe.

Gold prices rose markedly , as investors assessed the effect of reducing the dollar after policymakers in Washington failed to make progress on the settlement of the issue of the budget . Analysts say that while investors are increasingly worried that the political standoff in Washington will cause greater volatility in the market, as the date by which it is necessary to raise the debt limit is approaching , the hope of reaching a consensus remain high. But if Congress to October 17 will not increase the upper limit of U.S. debt , the largest economy in the world can announce an unprecedented default. Congressmen have not yet agreed on the financing and government agencies , closed for nearly a week .

Recall that in the last debate on the U.S. debt ceiling in 2011, the price of gold reached a record high of $ 1,920 an ounce. Then an agreement was reached by the Congress in the last minute.

Add that to the course of trade is also affected by a message from the World Bank. As it became known today, the World Bank cut its growth forecast for developing countries in East Asia, citing the weak growth in China and other countries in the region.

The bank now expects 7.1 percent growth in the developing countries of East Asia in 2013 , which was significantly lower than the original forecast of 7.8 percent, which was reported in April. Add that growth for 2014 is expected to reach 7.2 percent , which was also weaker than earlier forecast of 7.6 percent.

China's economy , which is the largest in the region is projected to expand by 7.5 percent this year and 7.7 percent in 2014. Note that these predictions were less than the April estimates of 8.3 per cent ( for 2013 ) and the rate of 8 percent ( for 2014 ) .

The report said that the slowdown in China's growth reflects the government's efforts to move from an export-oriented economy to one that focuses on domestic demand . It should be noted that the growth in the large middle -income countries , including Indonesia, Malaysia and Thailand, was also lowered in light of the decrease in investment, lower global commodity prices and the weaker -than-expected export growth .

According to the lender, now are the risks associated with the restructuring of the Chinese economy . A larger -than-expected decline in investment may have a negative impact on the region , especially on suppliers of capital goods and industrial raw materials in China , the bank said .

It should also be noted that despite the lack of publication of key U.S. data , traders are likely to remain cautious in the coming session . Add that any increase in physical demand, especially from China , who returns after a one week vacation , will also be in the spotlight.

The cost of the December gold futures on COMEX today rose to $ 1322.90 per ounce.

EUR/USD $1.3480, $1.3550, $1.3600, $1.3650

GBP/USD $1.6180

USD/JPY Y96.10, Y96.50, Y96.75, Y97.10, Y97.25, Y97.30, Y97.75, Y98.00, Y98.50, Y99.00

AUD/USD $0.9270, $0.9300, $0.9375, $0.9400

EUR/GBP stg0.8360

USD/CHF Chf0.8925

EUR/JPY Y130.75

AUD/JPY Y0.9125

NZD/USD $0.8235

EUR/CHF Chf1.2250

U.S. stock-index futures fell as lawmakers remained deadlocked over extending the nation’s debt limit to avoid a default.

Global Stocks:

Nikkei  13,853.32 -170.99 -1.22%

Hang Seng 22,973.95 -164.59 -0.71%

Shanghai Composite 2,174.66 +14.64 +0.68%

FTSE  6,403.69 -50.19 -0.78%

CAC  4,137.51 -26.74 -0.64%

DAX 8,548.14 -74.83 -0.87%

Crude oil $102.66 -1.14%

Gold $1319.90 +0.76%

Upgrades:

Apple (AAPL) upgraded to Buy from Hold at Jefferies, target raised to $600 from $425

Downgrades:

Facebook (FB) downgraded to Outperform from Strong Buy at Raymond James  

Other:

General Electric (GE) resumed with a Neutral at Goldman, target $26

Facebook (FB)  innitiated at Overweight at Atlantic Equities

EUR/USD

Offers $1.3700, $1.3650, $1.3600

Bids $1.3550, $1.3520, $1.3500, $1.3455/50, $1.3420

GBP/USD

Offers $1.6145/50, $1.6120, $1.6100, $1.6080

Bids $1.6030/25, $1.6000, $1.5980, $1.5950

AUD/USD

Offers $0.9550, $0.9500, $0.9480, $0.9450, $0.9425/30

Bids $0.9380, $0.9350, $0.9320, $0.9300

EUR/JPY

Offers Y132.80, Y132.50, Y132.20, Y132.00

Bids Y131.50, Y131.20, Y131.00, Y130.50

USD/JPY

Offers Y98.20, Y97.90/00, Y97.80, Y97.50, Y97.15/20

Bids Y96.80/70, Y96.55/50, Y96.20, Y96.00

EUR/GBP

Offers stg0.8550, stg0.8500, stg0.8480

Bids stg0.8450, stg0.8420, stg0.8400, stg0.8380, stg0.8350

European stocks drop as the US government entered its second week of a shutdown with no end in sight. US lawmakers have continued to butt heads over passing a budget bill since missing last Monday’s deadline.

Company news:

Burberry Group declined after the luxury-goods maker’s Chief Executive Officer Angela Ahrendts said a slowdown in Chinese sales may extend.

EADS advanced after its subsidiary Airbus SAS won its first order from Japan Airlines Co.

Currently:

FTSE 6,405.91 -47.97 -0.74%

CAC 4,122 -42.25 -1.01%

DAX 8,523.26 -99.71 -1.16%

EUR/USD $1.3480, $1.3550, $1.3600, $1.3650

GBP/USD $1.6180

USD/JPY Y96.10, Y96.50, Y96.75, Y97.10, Y97.25, Y97.30, Y97.75, Y98.00, Y98.50, Y99.00

AUD/USD $0.9270, $0.9300, $0.9375, $0.9400

EUR/GBP stg0.8360

USD/CHF Chf0.8925

EUR/JPY Y130.75

AUD/JPY Y0.9125

NZD/USD $0.8235

EUR/CHF Chf1.2250

Asian stocks fell, with the regional benchmark index extending last week’s drop, as U.S. lawmakers wrangled over the debt limit and partial government shutdown.

Nikkei 225 13,853.32 -170.99 -1.22%

Hang Seng 22,958.18 -180.36 -0.78%

S&P/ASX 200 5,161.11 -46.90 -0.90%

Shanghai Composite 2,174.66 +14.64 +0.68%

Blumont Group Ltd. and Asiasons Capital Ltd. each fell by records on resuming trading after the Singapore Exchange Ltd. imposed restrictions on investors in the stocks.

Sun Hung Kai Properties Ltd. declined 2.5 percent on a report the developer offered to sell units at a Hong Kong residential project at a discount.

Sharp Corp. sank 8.2 percent, falling the most on the regional equity benchmark after last month saying it may price a share sale as early as today.

05:00 Japan        Coincident Index 107.7 107.6 107.6

05:00 Japan        Leading Economic Index 107.9 106.9 106.5

05:00 Japan        BoJ monthly economic report

The yen climbed against its 16 major peers after Treasury Secretary Jacob J. Lew renewed his call for extending a U.S. debt limit to avoid a default, boosting demand for Japan’s currency as a haven.

The Swiss franc rose against the greenback after House Speaker John Boehner said the U.S. could end up in default unless President Barack Obama negotiates, with the government shutdown about to enter a seventh day. Lew reiterated that the U.S. will run out of its ability to borrow on Oct. 17. The Obama administration has said it won’t negotiate with Republicans over funding the government or raising the debt ceiling, arguing that it is part of the basic functions of Congress and shouldn’t be used as a point of leverage.

The pound advanced from near a one-month low against the euro before the Bank of England’s policy meeting this week. The BOE will keep its benchmark rate at a record-low 0.5 percent and its asset-purchase target at 375 billion pounds ($601 billion) on Oct. 10, according to economists in a Bloomberg poll.

EUR / USD: during the Asian session the pair rose to $ 1.3575

GBP / USD: during the Asian session, the pair rose to $ 1.6050

USD / JPY: during the Asian session the pair fell to Y97.00

There is only a light calendar expected on both sides of the Atlantic. The US week ahead will be light on data due to the federal government shutdown, hich has shuttered the federal agencies responsible for compiling and releasing the most important reports. Monday's European calendar gets underway at 0900GMT, with the 3rd estimate of the second quarter EMU GDP data. At 1400GMT, the forth quarter Eurozone economic outlook will be released.

There is only a light calendar expected on both sides of the Atlantic. The US week ahead will be light on data due to the federal government shutdown, which has shuttered the federal agencies responsible for compiling and releasing the most important reports. The government reports scheduled for next week, the release of which will likely be delayed until after government operations are fully restored, include the August trade balance report Tuesday, August JOLTs job openings Tuesday, August wholesale inventories Wednesday, the August Treasury budget, September retail sales, August business inventories, September import prices and Friday's September Consumer Price Index. The week's report on initial claims, however, will survive.

05:00 Japan        Coincident Index 107.7 107.6

05:00 Japan        Leading Economic Index 107.9 106.9

05:00 Japan        BoJ monthly economic report

07:00 Switzerland Foreign Currency Reserves 434.2 432.2

08:30 Eurozone Sentix Investor Confidence 6.5 10.9

09:00 Eurozone GDP (QoQ) +0.3% +0.3%

09:00 Eurozone GDP (YoY) -0.5% -0.5%

12:30 Canada        Building Permits (MoM) +20.7% -2.4%

19:00 U.S.        Consumer Credit 10.4 12.6

21:00 New Zealand NZIER Business Confidence 32

23:01 United Kingdom BRC Retail Sales Monitor y/y +1.8% +2.0%

23:01 United Kingdom RICS House Price Balance 40% 45%

23:50 Japan        Current Account (adjusted), bln 333.7 643.6