* U.S. politicians still trying to hammer out a deal to
* Deadline to lift U.S. debt ceiling due on Thursday
* China export growth fizzles in September
By Ian Chua
SYDNEY, Oct 14 U.S. stock index futures fell on
Monday and the safe-haven yen rose broadly, foreshadowing a
rocky start for Asian shares after weekend talks in Washington
failed to reach an agreement to avert a U.S. debt default.
Adding to the gloom, data on Saturday showed China's export
growth unexpectedly fizzled in September, underscoring worries
about flagging global demand.
U.S. stock index futures fell 0.8 percent in
early trade. If the losses are sustained, it indicates that Wall
Street would open lower later on Monday.
U.S. Treasury futures edged up 0.2 percent, though
the cash market will be shut due to the Columbus Day holiday.
Japanese markets are also closed on Monday for a public holiday.
U.S. stocks had risen strongly in ahead of the
weekend on hopes a deal to raise the $16.7 trillion federal
borrowing limit was near. But U.S. politicians remained at
Failure to break the stalemate before Thursday, the deadline
to raise the debt ceiling, would leave the world's biggest
economy unable to pay its bills in the coming weeks.
This would raise serious concerns about U.S. fiscal
stability and potentially have a catastrophic impact on global
Perhaps explaining why there is no major panic yet, many
analysts have not ruled out a last-minute deal before Oct. 17,
believing even U.S. politicians would not want to be responsible
for the dire consequences of a default.
"Most likely, a solution will be found before, or be in the
making, by October 17," analysts at Nomura wrote in a client
"The tail risk comes into play if there is no clear
framework for a solution by October 17. Entering this tail would
see risk jump in terms of funding market stress and risk assets
In currency markets, investors reacted by seeking safety in
the yen. That saw the dollar fall 0.3 percent to 98.35 yen
, while the euro slipped 0.1 percent to 133.22 yen
. The Australian dollar dipped 0.1 percent to 92.74
The dollar index, which tracks the greenback's
performance against a basket of major currencies, was only a