US BUDGET DEFICIT NARROWS TO $128.7 BILLION

The U.S. Treasury Department reported a budget deficit of $128.7 billion in August, down from $147.9 billion a year ago.

This was a bit narrower than the $130.0 billion expected by economists.

Fiscal year-to-date, the deficit stands at $589.2 billion, down from $755.3 billion a year ago.

"Spending cuts, greater tax revenues, and stronger economic growth have been supportive in narrowing the deficit," said Nomura economists ahead of the report.