Headlines:
- It's been a day now that the US government has shut down
- The S&P 500 rallies into a new all-time high: what's next for the stock market?
- ECB's Kazaks: Current interest rate level is very appropriate
- BOJ's Uchida says expects to keep raising rates if economy, prices adhere to forecast
- US, Japan reportedly arranging for Trump to make a visit to Japan on 27 October
- US Bessent: We could see hit to GDP from shutdown
- Switzerland September CPI +0.2% vs +0.3% y/y expected
- Eurozone August unemployment rate 6.3% vs 6.2% expected
- US September Challenger layoffs 54.064k vs 85.979k prior
Markets:
- EUR and JPY lead, CAD lags on the day
- European equities higher; S&P 500 futures up 0.2%
- US 10-year yields flat at 4.105%
- Gold up 0.5% to $3,884.04
- WTI crude oil down 0.6% to $61.44
- Bitcoin up 1.1% to $118,886
It was a quiet session but there were some decent market moves as we continue to grapple with the US government shutdown this week. The shutdown in itself is not having much impact, after market players brushed that off yesterday already. But in looking towards the second half of this week, it just means we won't have any major US economic data to work with.
The dollar is trading more mixed after holding steadier earlier in the session. It is lower at the balance, with slight losses against the euro and yen. EUR/USD moved up from 1.1730 to 1.1750 while USD/JPY is down from around 147.30 at the start of the session to 146.76 currently, down 0.2% on the day.
Besides that, the changes among other major currencies are nothing to shout about as we look towards US trading later.
In the equities space, things were more lively with European indices rallying strongly in keeping a hot start to October. Meanwhile, US futures are also higher with investors shrugging off the government shutdown and staying steadfast in their conviction for the Fed to cut rates at the end of the month.
The DAX and CAC 40 are holding over 1% gains with the former closing in on fresh record highs while the latter is at the highest since March.
In other markets, Treasury yields were quiet but precious metals are once again finding bids. Gold is nudging up to $3,884 while silver is once again jumping up to $47.65 in trying to break yesterday's high. Up, up, and away!
