How could markets trade during a US government shutdown?

With three weeks left before fourth-quarter earnings season, investors have little to ponder outside of Washington-D.C. drama, whether it be China trade negotiations, the Federal Reserve’s plan for future rate increases, or what appears to be an impending, partial government shutdown over disagreements over providing funding for increased fortifications at the U.S.-Mexico border.

After reports as late as Wednesday night suggested that the president and Congress had agreed on a plan to keep the government funded through Feb. 8, the deal fell apart Thursday, when president directed House Republicans to pass a funding bill that includes money to fund the expansion of the southern border wall.

The bill passed the House and has now been sent to the Senate, where there doesn’t appear to be enough support for passage, setting the stage for a partial shutdown at midnight Friday. President Trump is gearing up for the fight, tweeting that it will be the Democrats fault if a shutdown ensues.

MarketWatch

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Former Craig

Former Craig

Former Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.