Global Markets Mixed as Hopes of Averting U.S. Government Shutdown Fade
By Dow Jones Newswires StaffHopes dimmed for a last-minute deal to avoid a U.S. government shutdown, meaning Tuesday's JOLTS job openings figures for August may be the last data point investors can look to for rate-path guidance for some time. The Bureau of Labor Statistics last week confirmed it won't issue any economic reports during a government shutdown; Friday's U.S. nonfarm payrolls figures for September won't be released unless a shutdown is averted.Those concerns kept the U.S. dollar under pressure even after all the major U.S. stock indexes closed higher at the end of Monday's session. International stock markets were mixed to start the day on Tuesday, while gold hit yet another record high.U.S. stock futures for the S&P 500, Dow Jones Industrial Average and Nasdaq all edged lower early in European hours, down around 0.2% across the board.In Europe, major national stock markets were down a touch; the pan-European 600 fell 0.2% in morning trading. Germany's DAX dropped 0.2% and France's CAC 40 decreased 0.4%. Data showed annual inflation picked up pace in France at the end of the summer, an indication that the European Central Bank will likely keep interest rates unchanged for now at its next meeting.Shares in European oil companies slipped as crude prices fell on expectations of increased OPEC+ supply. Brent crude and WTI traded down 0.5% at $67.66 and $63.13 a barrel, respectively. Spain's Repsol led losses, trading down 1.2% while France's TotalEnergies fell 1.1%.Stocks in Asia were mixed as Japan's Nikkei 225 index fell 0.2%, whereas Hong Kong's Hang Seng climbed 0.7%. China's benchmark Shanghai Composite gained 0.5%.The U.S. dollar edged lower. Democratic leaders and President Trump have until midnight Tuesday to approve a federal spending bill. Near-term uncertainty will weigh on the markets "and also bring focus on the fiscal picture, which is not positive," said Jefferies economist Mohit Kumar in a note. The DXY dollar index against a basket of major currencies was last down 0.1% at 97.857. Bitcoin also eased after reaching a one-week high overnight.U.S. Treasury yields were down; the two-year Treasury yield declined 2.6 basis points, the 10-year yield was down 1.6 basis points at 4.124%, according to Tradeweb.Gold prices extended their rally, hitting a fresh record. Futures were recently up 0.7% to $3,883.70 a troy ounce, after reaching $3,889.20 earlier in the session. With the dollar slipping, a potential shutdown clouding the Federal Reserve's outlook, labor market indicators softening and U.S. equity valuations stretched "gold stands on solid footing as both a hedge and a diversifier," said Ahmad Assiri, market strategist at Pepperstone.Write to Barcelona Editors at [email protected]