Global Markets Mixed as U.S. Shutdown, Fed Policy Drive Uncertainty
Global markets kicked off October with a mix of gains and losses, driven by uncertainty around the U.S. government shutdown, monetary policy shifts, and commodity dynamics. The U.S. dollar weakened, while safe-haven assets like gold surged to record highs.
The U.S. dollar index extended its losing streak, with traders positioning for a dovish shift from the Federal Reserve. Meanwhile, the yen, euro, and British pound gained ground. Overnight trading was mixed across Asia, Europe, and commodities. TradingView showed gold reaching nearly $3,895 per ounce, driven by investor demand for a safe haven amid fiscal and monetary uncertainty.
The first trading day of October opened with a wave of uncertainty. India's Nifty 50 index rebounded, supported by gains in banking and IT sectors. In Europe, the STOXX 600 hovered near flat, while the DAX and FTSE 100 moved in opposite directions. South Korea and Taiwan showed strength, driven by their technology sectors. Australia and Singapore posted modest gains, supported by mining, energy stocks, and investor positioning.
In Asia, Japan's Nikkei index fell due to worries over the U.S. government shutdown. U.S. futures trading pointed to a weaker start for Wall Street. Crude oil steadied overnight, with Brent and WTI hovering around $66 and $63 per barrel respectively, as traders weighed OPEC+ output quotas and U.S. stockpile data.
As the U.S. government shutdown continues, markets remain uncertain. The Federal Reserve's policy outlook and shifting gold price dynamics will likely drive market behavior in the coming days. Safe-haven assets like gold are expected to remain in focus.
