"Gold has surged to a record high and Wall Street futures slipped even before the US government entered shutdown. The precious metal, seen as a safe haven, peaked at $3,875.53 before the shutdown. Futures for the Dow, S&P 500 and Nasdaq betting on where such indexes will go when trading resumes were all lower, with the Dow retreating from a record. The threat of federal services closing has overshadowed optimism that the US Federal Reserve could cut interest rates again."
"The shutdown may also delay key economic data used for policy decisions on any cut. Goldman Sachs Research noted markets have historically weathered such crises, with equities ending flat or higher at the close of the three prolonged shutdowns since the early 1990s despite early declines. Asian equities have mostly held firm despite the US government shutdown. Markets in Singapore, Seoul, Wellington, Taipei, Manila, Mumbai, Bangkok and Jakarta all closed higher, although Tokyo and Sydney slipped."
The US federal government has entered a shutdown after Democrats and Republicans failed to agree on a stopgap funding bill and the Senate failed to pass a temporary measure. It is the first shutdown in almost seven years. Gold surged to a record high, peaking at $3,875.53, while futures for the Dow, S&P 500 and Nasdaq were all lower and the Dow retreated from a record. The threat of federal services closing has overshadowed expectations of further Federal Reserve rate cuts and may delay key economic data used for policy decisions. Goldman Sachs Research noted equities have historically ended flat or higher after prolonged shutdowns, and Asian markets mostly held firm with several closing higher though Tokyo and Sydney slipped. Budget standoffs have become routine amid growing political polarization.
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