Early on Sunday the US House voted, once again, to tie a vote on government funding to a one-year delay of Obamacare. The Senate has twice rejected the amendment and will rejected it again. If not, Obama will veto it.
The seeming lack of progress means a shutdown at midnight on Monday is increasingly likely. It will be the first government shutdown since 1996.
With the Tea Party seemingly taking control of Republican leadership, there is a chance this could be an extended fight. When markets open on Monday, they will react accordingly. I wrote about a potential trading strategy for this on Friday.
