Market Turbulence Amid US Shutdown and Fed Uncertainty

Global markets were unsettled as Wall Street declines and unclear Federal Reserve signals followed the end of the U.S. government shutdown. Currency fluctuations and rising U.S. Treasury yields reflected investor uncertainty. Meanwhile, oil futures recovered some losses, and gold prices remained flat as Fed rate cut expectations diminished.

Market volatility persisted globally as Wall Street's downward trend impacted MSCI's global equities index. Investor optimism waned with the cessation of the U.S. government shutdown, coupled with ambiguous signals from the Federal Reserve about future rate cuts.

Currency markets reacted to these developments, with the dollar slipping even after hawkish comments from Fed officials. The unpredictability of economic data, owing to the recent shutdown, left traders uneasy about the health of the U.S. economy.

In commodity markets, oil prices rebounded slightly after a previous dip, while gold held steady following an initial rise, as faith in a December Fed rate cut diminished. The financial sector remains cautious amid fluctuating signals and market adjustments.

(With inputs from agencies.)