Global Markets React to Potential U.S. Government Shutdown
Global financial markets experienced an upturn as investors considered the potential impact of a U.S. government shutdown. Stocks rose, the dollar weakened, and gold hit a new high. President Trump plans to discuss government funding with Congress. Analysts predict a minimal economic impact if the shutdown is brief.
Global stocks rose on Monday amid investor anticipation of a U.S. government shutdown, which could delay crucial economic data releases, including the September payrolls report.
Gold surged to a new high as the dollar weakened, reflecting market concerns that a prolonged shutdown could impact the Federal Reserve's economic insight ahead of its October 29 meeting. In past instances of government closures, market impact has been minimal.
President Trump and congressional leaders were set to discuss extending government funding to prevent an imminent shutdown, while analysts expect minor economic repercussions unless the closure leads to permanent layoffs in the public sector.
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