Global Markets Grapple with US Shutdown and New Tariffs Impact
The US government has entered its 15th shutdown, impacting federal workers and leading to FAA furloughs. Investors are concerned about a slowing labor market, leading to speculation about a Federal Reserve rate cut. Meanwhile, gold prices rise, and Asian markets show mixed responses.
The U.S. government has embarked on its 15th shutdown since 1981, spurring significant consequences for federal workers. President Donald Trump, during the shutdown, has threatened to dismiss additional employees, with over 150,000 expected to leave their positions soon.
This development comes as investors worry about a slowing labor market, pushing gold prices to new heights. Meanwhile, U.S. flight operations are expected to be affected due to FAA staff furloughs, and Trump's new tariffs on trucks and patented drugs come into effect amid the shutdown.
Global markets reflect mixed reactions. U.S. stock futures showed slight declines, while Asian markets had varied performances. Attention now shifts to key economic indicators, with the ADP National Employment Report expected to show modest job gains, while euro zone inflation data could influence ECB policy decisions.
(With inputs from agencies.)
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