US EditionDollar on Defensive as US Government Shutdown Looms
Market declines reflect investor concerns over delayed economic data and disruptions to federal operations amid a deadlock on funding between Democrats and Republicans.
- On Tuesday, markets were subdued and the dollar weakened after Vice President JD Vance said Democrats and Republicans remained at a stalemate over funding federal operations ahead of midnight on September 30.
- Negotiations have stalled as Democratic lawmakers seek an extension of Affordable Care Act insurance subsidies, while Republican lawmakers press for a clean short-term patch through Nov. 21.
- Early trading saw the Dow slip 0.2% and the S&P 500 fall 0.1%, with S&P and Nasdaq futures down 0.4%, as the dollar index stood at 97.869 and gold reached $3,871 before retreating.
- The Department of Labor said the Oct. 3 jobs report would be postponed, Labor and Commerce statistics would halt, and a shutdown would suspend paychecks for nearly 3 million federal workers.
- History shows shutdowns often have modest market effects, with the S&P 500 averaging a 0.1% return; Deutsche Bank analyst Jim Reid warned the Federal Reserve might lack data for the Oct. 28 meeting.
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What could fuel the Indian stock market’s next bull run? Here are four key drivers
Indian stocks gained momentum as the RBI expressed confidence in the economic outlook and announced liquidity measures. While the market initially reacted positively, future performance hinges on multiple factors, including trade, earnings, credit, and fiscal factors, as per Axis Securities.
The new market month begins with slight price losses for the DAX. This is also due to the "shutdown" in the USA - but this is not yet a cause for greater concern for investors.
Channel News Asia
Dollar on defensive as US government shutdown looms
TOKYO :The dollar hovered near a one-week low versus major peers on Wednesday as the U.S. government headed towards a likely shutdown, which would delay the release of crucial jobs data.Government funding expires at midnight on Tuesday in Washington (0400 GMT) unless Republicans and Democrats agree to a last
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