The U.S. government shutdown is increasing uncertainty in financial markets
Uncertainty in financial markets is increasing, and the main consequence is a further appreciation of gold. The U.S. government shutdown risks delaying the release of September labor market data, the true macroeconomic beacon of the week.
Our intermarket dashboards confirm the situation: sentiment remains risk-on, but gold continues to rise. Equities are extending their rebound from the 10-day moving average, while bonds are struggling a bit more and remain around the fast-moving average.
On the macroeconomic front, the day precedes the flash estimate of September inflation in the Euro area, the September ISM manufacturing survey, and the final readings of the September PMI surveys.
Our forecasting analyses indicate a still-positive baseline scenario for equities, with some uncertainty in Asian markets. Gold continues to show buy signals, while the dollar remains weak. In the bond market, yields are expected to decline, but price momentum appears to have weakened significantly. Volatility remains stable.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 1 October 2025 - 7:10 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.
