Global Markets: Sanguine Amidst U.S. Turmoil

Global stocks rise and gold hits new highs despite concerns of a U.S. government shutdown. Investors focus on potential Federal Reserve rate cuts, observing historical trends. Market movements show resilience, but critical economic data releases may be disrupted, casting uncertainty on the economic outlook.

Global stocks experienced gains and gold touched record highs on Thursday, as investors downplayed the potential impacts of a U.S. government shutdown. A weak U.S. private labor market report reinforced hopes for Federal Reserve rate cuts, maintaining a largely optimistic market outlook.

Instead of focusing on the shutdown, investors are concerned with potential interest rate cuts by the Federal Reserve. Analysts from DataTrek Research observed correlations between current sector sub-indices of the S&P 500 and associated risks, suggesting caution amidst historical trends of market declines following similar patterns.

The protracted government shutdown could delay the release of essential employment and inflation data, obfuscating economic conditions. Though global market indices continue to rise, the climate remains uncertain as expert voices like Carmignac's Kevin Thozet call for a swift resolution to the standoff.

(With inputs from agencies.)