Tariff Tremors: How Trump's Policies Shake Global Markets

President Trump plans new tariffs on imported goods as a potential U.S. government shutdown looms. Markets globally reacted, with commodities like gold hitting records. Economic data from China and Japan showed signs of strain, while European markets opened weaker amidst ongoing trade tensions.

The global financial scene is tense as President Donald Trump announced new tariffs, targeting bathroom vanities, lumber, and cabinets, among other goods. This move adds to the existing duties on foreign furniture, set to begin October 14, amid looming government shutdown concerns.

Asian markets absorbed this overnight news, resulting in mixed reactions. While some commodities, like gold, reached record highs, uncertainty weighed on major economies. Official data from China indicates a continuous shrink in manufacturing, marking the sixth month of contraction. Similarly, Japan's industrial output fell significantly in August.

In Europe, market futures indicated a cautious opening. Key economic indicators, such as U.S. labor data and European inflation figures, are anticipated to drive market sentiment. With the potential halt in non-farm payroll releases, global attention turns towards alternative economic insights.

(With inputs from agencies.)