Australian Household Spending Rebounds Strongly in May as Travel and Dining Drive Consumer Growth 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
Gold Falls Below $4,000 as Strong Dollar and Fed Rate Hike Expectations Weigh on Prices 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
Wall Street Ends Mixed as Micron Surges, Apple Drops After Price Hikes 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
Oil Prices Drop as Strait of Hormuz Shipping Recovers 
Asian Markets Rally as Micron and Qualcomm AI Outlook Lifts Global Tech Stocks 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Australia Jobs Growth Strengthens Rate Hike Outlook 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
Gold Drops Below $4,000 as Strong US Dollar and Fed Rate Hike Expectations Pressure Bullion 
Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
White House Seeks $87.6 Billion Emergency Funding for Iran War, Farmers, and Ebola Response 
Asian stock markets opened cautiously on Monday as investors awaited developments on a potential U.S. government shutdown. President Donald Trump is set to meet with congressional leaders later in the day to discuss extending federal funding. Without a deal, the shutdown would begin Wednesday, coinciding with the implementation of new U.S. tariffs on trucks, pharmaceuticals, and other goods.
Analysts warn a prolonged closure could hinder the Federal Reserve’s policy decisions ahead of its October 29 meeting, as key reports like September payrolls would be delayed. Bank of America noted that while private data could fill gaps, the lack of official government releases may slightly reduce the likelihood of an October rate cut, though markets still price in a 90% chance. Growth impacts are expected to be minor, with estimates of a 0.1% reduction in GDP per week of closure. However, permanent job cuts tied to the shutdown could weigh on employment and consumer confidence.
Despite political uncertainty, equities may find support in seasonal trends. Historically, the fourth quarter has been favorable for U.S. stocks, with the S&P 500 posting gains nearly three-quarters of the time. On Monday, S&P 500 and Nasdaq futures gained 0.2%, while European futures, including Eurostoxx 50, FTSE, and DAX, also rose 0.3%. Japan’s Nikkei dipped 0.7% after a strong September, while South Korea’s market advanced 1.2%. MSCI’s Asia-Pacific index outside Japan rose 0.4%, adding nearly 4% in September.
Treasury yields steadied at 4.17% after recent pressure from strong U.S. economic data. The dollar index held firm at 98.134, with the euro trading at $1.1708 and the yen at 149.49.
In commodities, gold hovered near record highs at $3,764 an ounce, while oil prices eased. Brent crude slipped 0.8% to $69.57, and U.S. crude fell 0.9% to $65.14 as Iraq resumed exports through a key pipeline. OPEC+ is expected to approve another output hike of at least 137,000 barrels per day at its upcoming meeting.
