The ongoing US government shutdown has triggered unease across global financial markets, with investors reassessing risks to American assets amid stalled economic data releases and political gridlock. Key agencies like the Bureau of Labor Statistics have halted operations, delaying critical reports such as employment figures and inflation metrics – vital tools for policymakers and businesses alike.
Analysts warn the information vacuum complicates the Federal Reserve’s upcoming rate decision. "The cumulative effect of the shutdown, trade policy shifts, and recent US credit rating adjustments creates layered uncertainty," said Brian Shipley of Coldstream Wealth Management. Oxford Economics estimates a 0.1-0.2% weekly GDP growth reduction during partial shutdowns.
With 750,000 federal workers facing furloughs and threats of permanent job cuts, consumer confidence risks mirroring the 7% drop seen during the 2018-2019 shutdown. The crisis coincides with softening US labor markets and lingering tariff impacts, amplifying concerns for Asian exporters and investors exposed to US demand.
"Global risk appetite could weaken significantly if this becomes protracted," noted Premier Miton’s Neil Birrell. As markets await resolution, businesses across Asia are advised to monitor supply chain disruptions and currency volatility linked to Washington’s political standoff.
