Markets Rise Despite US Shutdown; Gold Hits Record High
Markets remain resilient despite the ongoing US government shutdown, with the Euro Stoxx and German Dax both gaining 1% in the afternoon. Gold prices hit a new record high due to investor uncertainty, while inflation in the Eurozone surged to 2.2% in September.
Analyst Birgit Henseler from DZ Bank has noted that previous US government shutdowns have had little impact on the S&P 500. The current shutdown is seen as a 'possible stress test' for the stock markets, but historically, a shutdown alone is not capable of breaking the upward trend. The US government shutdown has so far had minimal impact on bond markets, with yields showing only slight movements.
Gold prices have reached a new record high of $3,895 per troy ounce, up 0.8% currently. This is largely due to investor uncertainty, with many seeking safe havens for their investments. The euro remained relatively stable against the dollar at $1.1733.
In positive news for the healthcare sector, Pfizer has agreed with the US government to lower prices for Medicaid in exchange for tariff concessions. This move has boosted the sector, but there is no publicly available information on other pharmaceutical companies that have entered into similar negotiations.
While the US government shutdown and gold price records grab headlines, markets continue to perform well. Inflation in the Eurozone has risen to 2.2%, exceeding the European Central Bank's target. As the shutdown continues, investors will be watching for any significant impacts on the stock market today.
