Stock subdued as wait for Washington continues

Written By limadu on Rabu, 26 Desember 2012 | 17.42

Stocks ended Monday's short session weaker

NEW YORK (CNNMoney)

U.S. stock futures were slightly weaker, after U.S. markets continued to slide during a thinly-traded holiday shortened session Monday. Investors remain concerned that Congress and the administration will be unable to break the deadlock in talks to resolve the looming fiscal cliff crisis.

President Barack Obama is ending his vacation Wednesday to make a late bid to reach a deal before the year ends. The White House said he should be back in Washington Thursday, when House and Senate members are expected to reconvene.

Related: What will happen to stocks if we go over the cliff?

The one economic report due Wednesday is expected to contain some good news, as S&P Case Shiller reading on home values is likely to show continued improvement in the housing market. There are also likely to be some early readings on the strength of the holiday shopping season.

But other economic readings followed by investors aren't due until Thursday, and there is no corporate news scheduled.

So Wednesday could well be another low news, low trading volume day, which can lead to volatility in the markets.

Fear & Greed Index

European markets were closed Wednesday for the Christmas holiday.

Japan's Nikkei index gained 1.5%, and the yen continued its recent slide against the dollar as the country's parliament elected Shinzo Abe as prime minister. Abe, who won a landslide election victory earlier this month, has promised aggressive stimulus measures to combat deflation and get the world's third-biggest economy growing again. Other Asian markets were flat. Hong Kong was closed.

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First Published: December 26, 2012: 5:08 AM ET


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