EQUITIES rallied for a second day and gold hit another record on Tuesday on growing Federal Reserve interest rate optimism, though traders were preparing for a possible US government shutdown that could affect the release of key economic data.
A string of closely watched indicators has recently supported investor expectations that the US central bank will lower borrowing costs twice more this year, having done so this month for the first time since December.
And this week has readings on the labour market lined up – on job openings, private hiring and non-farm payrolls – with forecasters predicting they will show the labour market continuing to slow, giving Fed officials room to loosen monetary policy.
However, there are concerns that the failure of Republicans and Democrats to agree to keep funding the government could mean some figures could be postponed.
Congressional leaders from both sides met President Trump Monday in a bid to…
