As the September 30 government shutdown deadline looms, political tension remains high in Washington, with both Democrats and Republicans scrambling to position themselves in the looming blame game. The White House canceled a planned meeting between President Trump and top Democratic leaders, which was initially seen as an opportunity for Democrats to champion their stance on lowering healthcare costs.
Trump’s refusal to meet unless the Democrats drop demands for healthcare subsidies and Medicaid cuts intensified the standoff. Meanwhile, economic data showed that US business activity slowed to its lowest pace in three months, raising concerns about the broader economic recovery.
Federal Reserve Chair Jerome Powell voiced concerns about and labor market risks, leaving investors cautious ahead of potential in October. Wall Street pulled back from recent highs, particularly in Big Tech stocks, as the market digested Powell’s remarks on inflationary pressures.
In Europe, economic optimism slightly grew as private sector activity expanded at its fastest pace in 16 months. This recovery in business sentiment comes as geopolitical tensions with Russia continue, particularly in the wake of NATO’s promises to take strong action against Russian airspace violations.
Investors are also closely watching the Eurozone’s upcoming policy shifts as Germany’s bonds displayed mixed results, and the UK government’s future fiscal policy remains in focus. Wind energy stocks, however, surged on the back of stronger green energy investment. The region’s economic prospects remain cautiously optimistic, although uncertainties surrounding global trade and potential U.S. tariff impacts linger.
In Asia, China’s push for greater influence in global gold markets continues, with the PBoC encouraging foreign central banks to store their reserves in Shanghai, a move aimed at bolstering China’s role in the international financial landscape. Meanwhile, the Chinese ’s stability was under scrutiny after the country’s banking sector took steps to stabilize the exchange rate, signaling concerns about potential currency volatility.
Taiwan made headlines with its imposition of restrictions on chip exports to South Africa, a rare move driven by national security concerns over Beijing’s growing influence. In the Asia-Pacific, New Zealand’s RBNZ is set to appoint a new governor, a key move as the country grapples with leadership changes amidst challenging economic conditions. Australia, on the other hand, saw cautious market reactions as traders eyed local inflation data and the ongoing political uncertainty over clean energy policy, despite a strong showing from its domestic real estate sector.
On the energy front, reversed a four-day losing streak as concerns about potential disruptions to Russian supply pushed prices higher. Meanwhile, prices reached record highs for the third consecutive day, bolstered by China’s efforts to attract foreign gold reserves. The precious metals market remained relatively stable, with prices holding steady amid growing geopolitical risks, especially in Asia.
US stocks saw a dip, led by declines in tech stocks, while treasury yields remained firm after a successful auction of . In the foreign exchange market, the remained largely stable, though the underperformed within the G-10 group. European stocks posted gains, with wind energy companies leading the charge.