Gold hit another record Tuesday, while equity markets were mixed as traders prepared for a possible US government shutdown that could affect the release of key economic data, though hopes for more Federal Reserve interest rate cuts provided support.
AFP reports: A string of closely watched indicators has recently supported investor expectations that the US central bank will lower borrowing costs twice more this year, having done so this month for the first time since December.
And this week has readings on the labour market lined up — on job openings, private hiring and non-farm payrolls — with forecasters predicting they will show the labour market continuing to slow, giving Fed officials room to loosen monetary policy.
However, there are concerns that the failure of Republicans and Democrats to agree to keep funding the government could mean some figures could be postponed.
Congressional leaders from both sides met President Donald Trump Monday in a bid to find a breakthrough before a midnight Tuesday deadline, but top Senate Democrat Chuck Schumer told reporters afterwards that “large differences” remained.
Vice President JD Vance accused the Democrats of putting “a gun to the American people’s head” with their funding demands, adding that “I think we’re headed to a shutdown because the Democrats won’t do the right thing”.