U.S. Government Shutdown Looms: Global Markets on Edge
Global stocks rose while the dollar eased as investors prepared for a potential U.S. government shutdown. Concerns grew over its impact on economic data and markets. Gold soared to new highs due to dollar weakness. The shutdown may affect Federal Reserve decisions and market growth expectations.
Global stock markets experienced a rise on Monday as investor anxiety centered on a potential U.S. government shutdown. This uncertainty has led to an easing of the dollar and sparked a surge in gold prices, driven by fears of economic ramifications and delayed key data reports for September.
President Donald Trump is scheduled to meet with congressional leaders to discuss government funding extensions, as a shutdown looms if no agreement is reached by Wednesday. Tariffs on various goods are due to begin simultaneously, leaving the Federal Reserve without critical data before its meeting set for October 29.
Market analysts indicate a significant probability of a Federal Reserve rate cut in the upcoming months, with the shutdown's impact on growth expected to be minimal unless permanent layoffs materialize. Meanwhile, broader market sentiment remains cautiously optimistic, anticipating the typically positive fourth-quarter trends in stock performance.
(With inputs from agencies.)
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