Global selloff underway as traders sour on U.S. government shutdown and doubts about Fed rate cut schedule grow | Fortune

"It's not chaos but it's not good: The S&P 500 lost 0.28% yesterday and futures this morning are flat-suggesting that traders are unenthusiastic about bidding the market higher. Meanwhile, markets lost ground right across Asia. China's CSI 300 closed down nearly 2% after the government there announced strict new export controls on rare earth materials. The controls will hobble both the U.S. tech companies that rely on them for semiconductor chips and the Chinese companies that supply them."

"Polymarket odds show more than 90% of traders betting on October 15 or later for an end to the shutdown. "The mood music hasn't been helped by the government shutdown, which is now entering its 10th day. And the fear is that the longer it lasts, the worse the economic impact will be, as increasing numbers of workers miss paychecks from here," Jim Reid and the team at Deutsche Bank said in a note this morning."

Global equity markets weakened as the S&P 500 slipped 0.28% and U.S. futures were flat, reflecting limited willingness to push prices higher. Asian markets fell broadly, with China's CSI 300 down nearly 2% after strict new export controls on rare-earth materials that will constrain U.S. tech firms and Chinese suppliers. Japan's Nikkei fell after the government lost a coalition partner, while European benchmarks edged lower. The U.S. government shutdown appears likely to be prolonged, with Polymarket odds pointing to October 15 or later. Forecasts indicate the shutdown will slightly raise unemployment and reduce expectations for multiple Fed rate cuts.

Read at Fortune