Global shares slipped in cautious trading on Tuesday as investors weighed the possibility of a U.S. government shutdown.
In Europe, France’s CAC 40 fell 0.5% to 7,845.73, Germany’s DAX dipped 0.1% to 23,718.17, and Britain’s FTSE 100 lost 0.2% to 9,282.13. U.S. stock futures also pointed lower, with Dow futures down 0.2% at 46,518.00 and S&P 500 futures falling 0.2% to 6,703.75.
Asian markets showed mixed movements. Japan’s Nikkei 225 declined nearly 0.3% to close at 44,932.63. China released weak factory activity data for September, highlighting ongoing economic pressure amid U.S. trade tensions. In contrast, Hong Kong’s Hang Seng rose 0.9% to 26,855.56, while the Shanghai Composite gained 0.5% to 3,882.78. Australia’s S&P/ASX 200 slipped 0.2% to 8,848.80, and South Korea’s Kospi edged down nearly 0.2% to 3,424.60.
The U.S. federal government faces a looming budget deadline that could lead to a shutdown. Previous shutdowns were usually brief and had limited market impact. However, prolonged political deadlock between Democrats and Republicans could delay key economic reports, including data on employment and inflation. This potential shutdown may be more severe if the White House moves to implement large-scale federal worker layoffs.
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Stephen Innes, managing partner at SPI Asset Management, said, “The market has explored every angle of the government shutdown story, yet with less than 24 hours remaining before the deadline, the narrative continues to dominate investor attention.”
Investors are also eyeing Friday’s report on U.S. job creation and layoffs. Balanced numbers could support the Federal Reserve’s plan to continue lowering interest rates, while unexpectedly strong data might reduce the likelihood of further rate cuts, putting pressure on stock prices that have already surged in recent months.
In commodities, U.S. benchmark crude fell 97 cents to $62.48 per barrel, while Brent crude dropped $1.02 to $66.95 per barrel. In currency markets, the U.S. dollar rose to 148.87 Japanese yen from 148.60 yen, and the euro increased to $1.1761 from $1.1727.
Source: AP