Shares cautious in Asia as US government faces shutdown
Stocks made a cautious start in Asia on Monday, while investors were preparing to close the US government in a possible way, which would delay the publication of the September Payroll report and a prize of other important data.
President Donald Trump will meet with the best democratic and republican leaders in Congress to discuss the expansion of government financing. It will start from Wednesday without an agreement, which is when the new US’s tariffs on heavy trucks, drugs and other items enter into force.
A long closure can make the Federal Reserve blind fly in the economy when it meets on October 29th.
Analyst Analysts in Bofa said in a note, “If the closure goes beyond the FED meeting, the FED will rely on special data for policy decisions,” he said.
“In the margin, we think that this can reduce the possibility of a sowing section, but only marginalized.”
Markets imply 90 percent of a FED deduction in October and about 65 percent of another in December.
Bofa analysts said that a closure will only increase economic growth for each week it continues, and its impact on financial markets is minimum in the past.
He warned that if the government used the closure to dismiss workers permanently, it may have a more significant impact on payrolls and consumer confidence.
At the meeting of US generals and admirals in Quantico, Virginia on Tuesday, there is much uncertainty about what was called by Trump’s defense secretary Pete Hegseth.
Otherwise, the analysts expected to support purchasing stocks for the new quarter, historically tending to be positive for stocks. The S&P 500 won 74 percent of the time in the fourth quarter.
S&P 500 futures and NASDAQ futures transactions increased by 0.2 percent last week by modestly alleviated.
Eurostoxx has added 0.3 percent, such as 50 -term transactions, FTSE futures and DAX futures.
Nikkei from Japan fell 0.7 percent and increased by 6.0 percent in September, South Korea jumped by 1.2 percent and brought its earnings to 6.3 percent for the month.
MSCI’s Asian-Pacific Shares Index outside Japan fell by 0.4 percent and increased almost 4.0 percent for the month.
In the bond markets, the treasures found support at 4.17 percent suppressed by the US’s optimistic economic data last week, which led investors to withdraw expectations about how their low Fed rates could finally go.
This week, a series of central bank speakers, the FED and the European Central Bank at least four are only on Monday.
The dollar index was fixed in 98.134, which benefited from the party of better economic news last week. The euro is $ 1,1708 in the lower half of $ 1,1646 (A1.7787) ($ A1.7881).
The dollar remained in 149.49 Yen last week just above 1.0 percent and after getting away from the lowest level of September.
In the commodity markets, Gold kept one ounce $ 3,764 (A5.749 $) below the record level.
Oil prices began to flow from a pipeline to Türkiye from the semi-autonomous Kurdistan region in Northern Iraq for the first time in 2-1/2 years.
Reuters reported that OPEC+ will approve of at least 137,000 barrels per day at the next Sunday meeting.
Brent dropped to $ 69,57 (A106.25 $) with a barrel of 0.8 percent (A106.25 $), while the US building reached $ 65.14 percent per barrel ($ A99.49 $).
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