American government closure .. Wall Street is declining and gold records a record

The global markets witnessed today, Wednesday, severe fluctuations after the entry of the American government closure, in implementation, in the absence of a financing agreement between Congress and the US administration, which led to the suspension of many government services and the postponement of major economic data.
The futures for the Standard & Poor’s 500 and Nasdak index fell by 0.5%, while gold prices jumped to a historic level of $ 3,875 per ounce, setting a record for the third day in a row. As for the European futures, they settled without a change. Financial agencies warned that the closure will stop the issuance of the job report for the month of September, and will lead to compulsory leave for about 750 thousand federal employees, at a daily cost of $ 400 million. In the absence of the expected non-agricultural job report on Friday, investors converted to the ADP report for employment in the private sector, which is expected to appear only 50,000 jobs. Financial analyst Kyle Roda of “Capital.com” indicated that previous closures had no significant material effects on the markets, citing the Wall Street height during the closure of 2018-2019, which lasted for more than a month. But he pointed out that the current situation may be different due to the threats of US President Donald Trump with permanent demobilization operations, which may turn the crisis into a “small shock” in the labor market. On the other hand, investor bets on reducing interest rates from the federal reserve, where transactions indicate a possibility of 96% to reduce in October, and 74% for an additional reduction in September. Performance; The Japanese Nikai Index decreased by more than 1% after strong gains in the previous quarter, while South Korean stocks increased by 0.6%, and the Taiwan index by 1.3% with the support of export data. In the currency market, the dollar index settled at 97.84 after three sessions of losses, and kept its stability against the Japanese yen at 147.98 yen. As for the bond market, the return on US Treasury bonds for 10 years remained constant at 4.156%. In the energy market, oil prices stabilized two days after the decline, as American crude increased by 0.1% to $ 62.46 a barrel, while Brent crude rose 0.2% to $ 66.16 a barrel, amid anticipation of the upcoming “OPEC+” meeting.