Investor attention remains focused on the government shutdown, which began yesterday and, according to experts, may last at least two weeks. It has already resulted in the absence of several key federal economic releases today, including weekly jobless claims. In addition, the Department of Labor announced that the September employment report will also not be published on Friday, as data collection is suspended. Treasury Secretary Scott Bessent told CNBC that the country’s economic growth may also be hit by the shutdown. He also touched upon the issue of replacing the current Fed Chair Jerome Powell, whose term expires in May next year: without naming names, Bessent said he had spoken to eleven potential candidates, narrowing the list down to three to five, which was handed to President Donald Trump for a final decision.

Eurozone

The euro is strengthening against the U.S. dollar and the pound but shows mixed performance against the yen.

August unemployment data in the eurozone showed an increase from 6.2% to 6.3%, the highest since May. Labor market pressure comes from the manufacturing sector, where production and staffing are being cut. Still, the overall economy remains stable: manufacturing in September is slowing less than expected, and service sector activity is expected to continue growing. Tomorrow at 10:00 (GMT+2), eurozone business activity data will be published: forecasts suggest the services PMI will rise from 50.5 to 51.4, while the composite index will climb from 51.0 to 51.2, potentially supporting the euro further.

United Kingdom

The pound is losing value against the euro and yen, with mixed performance against the U.S. dollar.

According to a Bank of England survey, company managers are showing the weakest hiring intentions since 2020 and expect the highest consumer price inflation since early 2024. Most businesses plan to keep staffing levels unchanged over the next 12 months due to higher social contributions and taxation. Respondents see average CPI at 3.5%, the highest expected level since December 2023. Tomorrow at 10:30 (GMT+2), U.K. business activity data for September will be published: forecasts indicate services PMI will decline from 54.2 to 51.9, and the composite index from 53.5 to 51.0, which may pressure the pound further.

Japan

The yen is strengthening against the pound and U.S. dollar, while showing mixed movement versus the euro.

Investor focus is on the latest comments from Bank of Japan Deputy Governor Shinichi Uchida, who noted improving sentiment in domestic business circles and sustained corporate profits despite U.S. tariffs pressuring exports. He confirmed the regulator will continue tightening monetary policy based on macroeconomic data. Experts interpreted this as confirmation of readiness to raise the interest rate again soon: currently, the market assigns a 60% probability of a hike to 0.75% by the end of this month.

Australia

The Australian dollar is losing value today against major peers — the euro, pound, yen, and U.S. dollar.

Investor focus is on trade data: August exports plunged 7.8% after a 2.5% rise in July, with gold shipments hardest hit. Imports, however, rose 3.2% after –2.4% the previous month, driven by consumer goods, transport, and telecom equipment. As a result, the trade surplus dropped from 6.612 billion AUD to 1.825 billion AUD. Further deterioration may push the Reserve Bank of Australia (RBA) to cut borrowing costs again to support growth.

Oil

Oil prices continue attempts to decline amid concerns over a major oversupply in the energy market. According to Reuters, OPEC and its allies may discuss boosting November production by as much as 500,000 barrels per day, rather than the previously expected 137,000–140,000 bpd. Meanwhile, U.S. Energy Information Administration (EIA) weekly data showed crude inventories rose by 1.792 million barrels versus a forecast of 1.5 million, gasoline by 4.125 million, and distillates by 0.578 million — all pressuring prices further.