Markets Braced: Shutdown Looms Over Equities and Dollar

On Tuesday, global markets operated under a cloud of uncertainty, with the dollar slipping and equities showing little movement. Concerns of an impending U.S. government shutdown overshadowed proceedings, driving gold to reach record highs before trading lower. Washington's political stalemate threatens to delay critical job data releases.

Market performances were mixed, characterized by flat trends in the S&P 500 and Dow Jones Industrial Average. The Nasdaq saw a minor decline of 0.2%. The Federal Reserve faces a potential challenge in the absence of key economic data, as the likelihood of a government shutdown on October 1 grows.

Equities have generally maintained positive sentiments, buoyed by improved earnings and central bank rate cuts. However, the prospect of a prolonged shutdown could disrupt this optimism, with analysts and policymakers closely monitoring developments. Simultaneously, gold has enjoyed a robust presence, bolstered by investor concerns over the unfolding fiscal uncertainty in the U.S.