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US shutdown: Why have markets been slow to react?

4 October 2013 Last updated at 10:13 BST

After largely shrugging off the first few days of a US government shutdown, US markets finally fell on Thursday due to worries over Washington gridlock.

The Dow Jones Industrial Average, S&P 500, and Nasdaq all closed down by close to 1%.

Wall Street trader Benedict Willis told BBC business reporter Mariko Oi, "the market is more concerned with the idea that the United States government may default".

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