8.47am: Consequences of US govt shutdown
With Q4 underway, “all eyes are now on the US government shutdown,” says Jim Reid at Deutsche Bank, after talks in the Senate failed to find an agreement overnight, the first time in almost seven years.
“There are no signs of an imminent compromise between the White House and the Democrats, and the Republican leadership in the Senate suggested that any further votes may not take place until after the Yom Kippur holiday on Thursday.”
President Trump has reiterated his threat to dismiss “a lot” of federal workers during the shutdown.
While markets historically have taken shutdowns in their stride, Reid said the practical terms could have a “big impact for this week is that we’re flying blind on the economic data front”.
“So as it stands, we won’t get a jobs report on Friday,” as the Bureau of Labor Statistics (BLS) will not be releasing new data.
“Contrary to our prior…
