By Lewis Krauskopf
(Reuters) -TRADING DAY
Making sense of the forces driving global markets
By Lewis Krauskopf, Markets Reporter
Jamie McGeever is enjoying some well-deserved time off, but the Reuters markets team will still keep you up to date on what’s happening in markets. We are just hours away from a U.S. government shutdown, barring a last-ditch agreement between Republicans and Democrats to fund federal agencies. I’d love to hear from you, so please reach out to me with comments at .
Today’s Key Reads
Today’s Key Market Moves
Today’s Key Talking Points
Unless Republicans and Democrats reach an agreement to at least temporarily fund federal agencies in the next few hours, the U.S. government would enter its 15th shutdown since 1981.
In a salvo ahead of the deadline, President Donald Trump warned congressional Democrats that allowing the federal government to shut down would let his administration take “irreversible” actions including closing programs important to them.
The government last shut down for over 30 days in 2018 and 2019, during Trump’s first term.
While tariffs have receded as the main factor driving markets, Trump demonstrated this week that he continues to favor the levies as a key policy tool.
The Republican president started the week saying he would impose a 100% tariff on all films produced overseas that are then sent into the U.S., signaling his willingness to extend protectionist trade policies into cultural industries. Then late last night, the White House said Trump signed a proclamation to set a 10% tariff rate on imports of lumber and 25% on vanities, kitchen cabinets and upholstered wooden products.
Tariffs also appeared to be a key lever Trump used in securing an agreement from Pfizer to lower drug prices. Trump said on Tuesday that the drugmaker will cut the price of all prescription drugs in the Medicaid program for low-income Americans and sell new medicines at a “most-favored-nation” price, in exchange for tariff relief.
A day after topping $3,800 an ounce for the first time, gold prices hit another record high on Tuesday. The yellow metal climbed over 11% in September alone, pushing its year-to-date ascent to about 47%.
Uncertainty over the government shutdown appeared to be helping the bid for the safe-haven asset.
What could move markets tomorrow?
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
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(By Lewis Krauskopf, Editing by Bill Berkrot)
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