Energy fell while other commodities rose.

Energy underperformed, but the majority of commodities rallied this week as the budget stalemate in Washington ended. Stocks surged to record highs. The S&P 500 gained 2.3 percent, bringing its year-to-date gain up to 22 percent.

Macroeconomic Highlights

The big story this week was the resolution to the political debacle in Washington. Congress passed a last-minute bill to reopen the government and raise the debt ceiling just hours before the Oct. 17 deadline.

But in a sign that another fiscal crisis could emerge early next year, the bipartisan deal forged by the Senate only provides enough funding for government agencies through Jan. 15, while giving the Treasury borrowing authority to last through Feb. 7.

Standard & Poor’s said that the shutdown reduced economic output by $24 billion, which translates into a 0.6 percent reduction in quarterly GDP growth.

In other news, China reported that its gross domestic product in the third quarter grew at a 7.8 percent annualized pace, matching expectations, but up from 7.5 percent in the second quarter.

Meanwhile, separate data showed that Chinese industrial production in September grew by 9.6 percent year-over-year, equal to expectations but up from 9.5 percent in August. At the same time, retail sales grew by 10.2 percent, also equal to expectations but down from 10.4 percent in August.

….read whole article HERE