The U.S. government is heading toward its first shutdown in seven years after Republicans and Democrats failed to strike a budget deal. Thousands of federal employees are expected to be furloughed, with key services paralyzed. The Trump administration may also seize the opportunity to push through permanent spending cuts. The dollar weakened and U.S. futures retreated on the news.
Safe-haven demand lifted gold to another record, climbing 0.74% to $3,860 an ounce.
In Europe, manufacturing momentum faltered. The HCOB Eurozone Manufacturing PMI slipped back into contraction territory at 49.8 in September, down from 50.7 in August. France’s gauge dropped sharply to 48.2 from 50.4, while Germany’s fell to 49.5 from 49.8, signaling further weakness in the bloc’s industrial engine.
On the corporate front, Nike Inc. posted stronger-than-expected revenue and profit but struck a cautious tone with its forward guidance. Pfizer Inc. and the U.S. government reached an agreement to lower drug prices for Medicare patients, a move that could reshape the pharmaceutical landscape.
Deal-making also drew attention. Berkshire Hathaway Inc. is reportedly finalizing a $10 billion acquisition of Occidental Petroleum’s petrochemicals business. Meanwhile, BlackRock Inc.’s Global Infrastructure arm is said to be closing in on a deal to buy utilities group AES Corp.
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