Global Markets Jitter Amid U.S. Government Shutdown Fears

Global stock markets showed upward momentum on Monday, fueled by a retreat in the dollar and concerns over a possible U.S. government shutdown. The uncertainty surrounding the shutdown could delay critical economic data releases, including the September payrolls report. The situation saw gold reaching new highs, while oil prices dipped amid resumed oil flows from Kurdistan to Turkey.

President Donald Trump is scheduled to meet with top Democratic and Republican lawmakers to discuss extending government funding and avoiding a shutdown. Without a consensus, Wednesday could see not just a shutdown but also the imposition of new U.S. tariffs on heavy trucks, patented drugs, and other imports. Historical precedents show equity markets have been resilient in past shutdowns.

Analysts noted a prolonged closure could leave the Federal Reserve lacking key economic data during its October 29 meeting, influencing its monetary policy. Meanwhile, significant shifts were observed in commodity markets and currencies, with investors adjusting expectations due to developments in the U.S. economic outlook.

(With inputs from agencies.)