"S&P 500 futures moved sharply down at about 2 a.m. ET this morning after the U.S. federal government went into another shutdown. The key difference for markets this time around-there have been about 20 shutdowns since 1976-is that the Bureau of Labor Statistics won't be publishing the upcoming jobless claims report or the Consumer Price Index (inflation). This means investors will be in the dark for a while,"
""A big impact for this week is that we're flying blind on the economic data front. So as it stands, we won't get a jobs report on Friday, as the BLS aren't releasing new data. Contrary to our prior expectations the Labor Department yesterday said we won't see U.S. jobless claims in the shutdown either," Jim Reid and the team at Deutsche Bank warned clients this morning. "We thought we might see it released as the States compile the data."
"The U.S. dollar sank this morning but quickly regained most of its losses. It remains down by just under 10% for the year on the DXY currency index. Unsurprisingly, safe haven assets also saw a pop. The price of gold-via the Comex continuous contract-spiked 1.1% this morning to $3,913.70 per ounce. And Bitcoin rose sharply by more than 2% this morning to $116.4K."
S&P 500 futures fell sharply around 2 a.m. ET after the U.S. federal government entered another shutdown. The Bureau of Labor Statistics will not publish upcoming jobless claims or the Consumer Price Index if the shutdown persists, leaving investors without key economic data. S&P futures were down 0.55% premarket while Asian and European markets rose. The U.S. dollar briefly sank before recouping losses and remains nearly 10% lower year-to-date on the DXY. Safe-haven assets rallied: gold spiked 1.1% to $3,913.70 per ounce and Bitcoin rose over 2% to $116.4K. Analysts warned prolonged shutdown and layoffs could weaken GDP and prompt earlier Federal Reserve rate cuts.
Read at Fortune
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