Despite the US government shutdown, global stock markets are climbing to record levels. Investors remain optimistic thanks to the rise in tech stocks and expectations of a US interest rate cut.
Lack of data was not a problem
The critical US employment data (payrolls) expected to be released on Friday was not published due to the government shutdown. However, markets believe this situation has increased the likelihood of a Fed interest rate cut.
Dollar under pressure
The dollar index fell sharply this week, while the yen was the biggest winner. Services PMIs in the Eurozone rose to an eight-month high, supporting the euro.
Gold shines
Gold prices, seen as a safe haven during times of uncertainty, hit a new record high. An ounce of gold reached $3,896 and is up 47% this year. According to AllianzGI, gold stands out as the “strongest safe haven.”
Asian stock markets rise
Japan’s Nikkei index rose 1.5%, while Taiwan’s stock market also hit a record high. The MSCI Asia index closed the week with a gain of 2.3%.
Oil is falling. Brent crude oil fell to $64.81, experiencing its sharpest weekly decline in three months. Demand concerns continue to put pressure on prices.
