By Mike Dolan
-What matters in U.S. and global markets today
By Mike Dolan, Editor-At-Large, Finance and Markets
Buoyant world stock markets seem oblivious to the possibility that the U.S. government may be forced to shut down operations this week just as the third quarter comes to a close on Tuesday. But gold also raced to a new high above $3,800 an ounce as the dollar fell back once more.
Invest in Gold
Republicans urge Democrats to agree to short-term bill to keep US government open
Senate Democrats demanded that any legislation undo cuts to healthcare programs.
With President Donald Trump due to meet top Democratic and Republican leaders in Congress on Monday to discuss extending government funding beyond month end, the most immediate impact of a shutdown could be to postpone the release of the critical September employment report that’s due on Friday.
In the absence of a payrolls report, markets will have to feed off the rest of the week’s labor market data – starting with August job openings tomorrow – and absorb the implications of last week’s consumer spending rise that catapulted U.S. GDP growth trackers to as high as 3.9%. That rate of growth and the loosest financial conditions in four years question the need for further rate cuts and a stream of Federal Reserve speakers are scheduled for Monday. U.S. stock futures are up again ahead of today’s bell, with Japan underperforming overseas as the yen rose on speculation about an interest rate hike there.
* Shutdown Jitters and Fed Outlook Investors are bracing for a potential U.S. governmentshutdown starting Wednesday if Congress fails to pass a fundingbill. A prolonged closure could delay key economic data,including Friday’s payrolls report, complicating the Fed’spolicy outlook ahead of its October meeting. Markets currentlyprice in about 40 basis points of easing by year-end, with a 90%probability of an October cut. * Quarter-End Positioning and Equity Moves U.S. stocks closed higher Friday after August PCEinflation matched expectations, though all three major indexesended the week lower. The Dow gained 0.7%, the S&P 500 rose0.6%, and the Nasdaq added 0.4%, as investors balanced resilienteconomic data with hopes for further Fed easing. Analysts expectQ4 to be seasonally strong, with the S&P 500 historicallygaining in 74% of fourth quarters. * Tariff Sweep Lifts Select Stocks President Trump announced new tariffs on heavy-dutytrucks, branded pharmaceuticals, and home furnishings, sparkingsharp moves in related shares. Truck maker Paccar jumped 5.2% onexpectations of domestic demand, while Eli Lilly gained 1.4%.The measures, which take effect Wednesday, add another layer ofuncertainty for trade-sensitive sectors as markets head into Q4.Trump is also considering imposing tariffs on foreign electronicdevices based on the number of chips in each one, Reuterssources said.
By Mike Dolan
-What matters in U.S. and global markets today
By Mike Dolan, Editor-At-Large, Finance and Markets
Buoyant world stock markets seem oblivious to the possibility that the U.S. government may be forced to shut down operations this week just as the third quarter comes to a close on Tuesday. But gold also raced to a new high above $3,800 an ounce as the dollar fell back once more.
Invest in Gold
Republicans urge Democrats to agree to short-term bill to keep US government open
Senate Democrats demanded that any legislation undo cuts to healthcare programs.
With President Donald Trump due to meet top Democratic and Republican leaders in Congress on Monday to discuss extending government funding beyond month end, the most immediate impact of a shutdown could be to postpone the release of the critical September employment report that’s due on Friday.
In the absence of a payrolls report, markets will have to feed off the rest of the week’s labor market data – starting with August job openings tomorrow – and absorb the implications of last week’s consumer spending rise that catapulted U.S. GDP growth trackers to as high as 3.9%. That rate of growth and the loosest financial conditions in four years question the need for further rate cuts and a stream of Federal Reserve speakers are scheduled for Monday. U.S. stock futures are up again ahead of today’s bell, with Japan underperforming overseas as the yen rose on speculation about an interest rate hike there.
* Shutdown Jitters and Fed Outlook Investors are bracing for a potential U.S. governmentshutdown starting Wednesday if Congress fails to pass a fundingbill. A prolonged closure could delay key economic data,including Friday’s payrolls report, complicating the Fed’spolicy outlook ahead of its October meeting. Markets currentlyprice in about 40 basis points of easing by year-end, with a 90%probability of an October cut. * Quarter-End Positioning and Equity Moves U.S. stocks closed higher Friday after August PCEinflation matched expectations, though all three major indexesended the week lower. The Dow gained 0.7%, the S&P 500 rose0.6%, and the Nasdaq added 0.4%, as investors balanced resilienteconomic data with hopes for further Fed easing. Analysts expectQ4 to be seasonally strong, with the S&P 500 historicallygaining in 74% of fourth quarters. * Tariff Sweep Lifts Select Stocks President Trump announced new tariffs on heavy-dutytrucks, branded pharmaceuticals, and home furnishings, sparkingsharp moves in related shares. Truck maker Paccar jumped 5.2% onexpectations of domestic demand, while Eli Lilly gained 1.4%.The measures, which take effect Wednesday, add another layer ofuncertainty for trade-sensitive sectors as markets head into Q4.Trump is also considering imposing tariffs on foreign electronicdevices based on the number of chips in each one, Reuterssources said.
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