Market Jitters: U.S. Shutdown Sparks Global Economic Concerns

Global markets showed signs of caution amidst fears of a probable U.S. government shutdown, impacting the dollar and equities, while spotlighting upcoming jobs data. Wall Street's downturn affected global indexes. Gold reached record highs due to shutdown risks. The situation may influence future Federal Reserve rate decisions.

World markets experienced turbulence as concerns over a potential U.S. government shutdown intensified on Tuesday, impacting both the dollar and equities, while gold reached record levels. President Donald Trump indicated that the U.S. might be heading for its 15th government shutdown since 1981, potentially delaying critical jobs data.

The looming shutdown has focused attention on U.S. labor statistics. The Labor Department's JOLTS report showed marginal increases in job openings, although hiring declined. This reflects a tepid job market that might allow the Federal Reserve to consider further interest rate cuts even with strong consumer spending.

Concerns over the U.S. shutdown boosted demand for U.S. Treasuries, while the dollar depreciated. Meanwhile, European shares advanced, and gold continued its upward trajectory, marking over a 10% gain for September. The broader economic outlook remains tense, influenced by upcoming decisions from global central banks.

(With inputs from agencies.)