From Marc to Market:
Overview: The US federal government is under partial closure following the inability to approve appropriations to start the new fiscal year. The president has threatened to permanently fire not just furlough many "non-essential" government workers, but note that as of yesterday, some 150k federal workers have accepted the government's buyout. The longest shutdown in this macabre and repeated political drama has been 35 days in President Trump's first term. We fear this one may also be protracted. The dollar is narrowly mixed, steadying in late European morning turnover after initially being sold. The dollar is also mostly firmer against emerging market currencies.
The rising yen, the strongest of the G10 currencies in recent days, has weighed on Japanese equities, but other markets in the Asia Pacific region are higher, though China and Hong Kong markets are closed for the national holiday. Australia is the chief exception today. Europe's Stoxx 600 is higher for the fourth consecutive session, matching the longest advance since May. US index futures are off around 0.50%-0.60%, though government shutdowns have not typically been negative for US equities. European benchmark 10-year yields are mostly 1-2 bp higher. The 10-year US Treasury yield is nearly flat, slightly below 4.15%. Gold has soared to a new record, a little above $3895. It finished last week near $3760. November WTI is extended its pullback. It is below $62. Last month's low was near $61. Before last weekend, it briefly traded above $66....
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