Headlines:
Markets:
- JPY leads, CHF lags on the day
- European equities greater; S&P 500 futures down 0.5%
- US 10-year yields down 1.1 bps to 4.138%
- Gold up 0.5% to $3,878.87
- WTI crude oil down 0.5% to $62.05
- Bitcoin up 1.5% to $116,407
The standoff between the Republicans and Democrats continued and it lastly led to the US authorities shutting down in a single day. That now threatens key operational dangers, with the potential for main US financial knowledge releases to be delayed within the coming days/weeks.
For this week, an important can be a delay to the US non-farm payrolls knowledge on Friday. That appears imminent now as lawmakers proceed to play a sport of hen in pushing their respective agendas.
The shutdown weighed on US futures principally, with the relative uncertainty biting at market sentiment. For now, any financial dangers needs to be contained however can be extra regarding if the shutdown is extended. S&P 500 futures had been down round 0.2% early on however fell to publish declines of 0.8% earlier than recovering just a little little bit of floor for now.
That led to European shares holding decrease on the open however traders quickly turned their heads as regional shares then rallied to publish modest positive factors now to begin October buying and selling. That comes regardless of euro space inflation knowledge is seen reaffirming the ECB view of pausing any fee cuts by means of to year-end.
Within the FX area, the greenback was weighed down initially as properly on the shutdown information. EUR/USD moved as much as a excessive of 1.1778 earlier than backing off to maintain close to flat ranges now at 1.1733. In the meantime, USD/JPY stumbled decrease from 147.50 ranges within the handover from Asia to check waters slightly below 147.00 – down 0.6% on the day.
Moreover that, GBP/USD is seen up 0.3% to 1.3480 whereas AUD/USD is simply marginally up by 0.1% to 0.6615 with giant possibility expiries in mess around 0.6600 for the latter. There wasn’t an excessive amount of else happening because the strikes should not too putting within the main currencies area.
Within the bond market, Treasury yields had been steadier for essentially the most half however at the moment are tilting barely decrease as we strategy US buying and selling. 10-year yields are down 1.1 bps to 4.138% after having held little modified close to 4.15% for a lot of the session.
In different markets, gold continues to be a standout performer because it rose to a contemporary file excessive of $3,895 earlier than one other slight spherical of profit-taking hit simply earlier than the $3,900 mark. The valuable metallic is seeing positive factors trimmed to simply 0.5% now at $3,878 on the day.
All eyes will keep on the headlines from the US within the day forward, in on the lookout for any clues on how lengthy the federal government shutdown would possibly final. The impression of that in direction of the Fed resolution on the finish of the month is what market gamers can be frightened about. However for now, calmer heads recommend that policymakers have sufficient to reaffirm market expectations and pricing of one other 25 bps fee reduce.
