Equities Extend Gains, Gold Hits Fresh Records, Shutdown Looms

Global markets entered the final week of September on a strong note, with equities advancing across major regions, safe-haven demand propelling gold to new highs, and political developments in Washington adding a layer of uncertainty. Investors are navigating a busy economic calendar, including US jobs data, while also weighing the risk of a government shutdown that could delay critical releases.

Global Equities — Rally Carries into September’s Close

Equities continued to build momentum at the start of the week. Futures on the S&P 500 advanced around 0.4%, setting the index on course for its strongest monthly performance of the quarter. Europe’s Stoxx 600 gained in early trading, supported by healthcare and mining shares, while Asian markets followed suit, with Hong Kong leading regional gains.

In Asia, Chinese equities were in focus after industrial profit data showed a 20.4% annual rise in August — the first increase in four months. Factory deflation also eased, signaling that Beijing’s policies to address overcapacity and deflation risks may be gaining traction.

Gold and Precious Metals — New Record Highs

Gold surged past $3,800 an ounce to an all-time high of $3,812, supported by a weaker dollar and sustained inflows into bullion-backed ETFs. The metal has now posted six consecutive weekly gains and is on track for its third straight quarterly advance. Silver also climbed to levels not seen since 2011, while platinum and palladium registered sharp moves higher amid supply tightness and elevated lease rates.

The rally comes against the backdrop of uncertainty around US fiscal policy. A potential government shutdown could delay key economic data, including Friday’s nonfarm payrolls report, amplifying safe-haven demand.

Currencies and Bonds — Dollar Softens, Yields Edge Lower

The US dollar extended its decline for a second day, weighed down by month-end flows and the rising possibility of a government shutdown. The euro, yen, and pound all advanced modestly against the greenback, while the offshore yuan firmed.

Treasury markets reflected cautious positioning. The 10-year US yield slipped three basis points to 4.15%, while European and UK benchmark yields also edged lower.

Oil Market — Supply Concerns Pressure Prices

Crude oil weakened, with Brent slipping around 1% to trade below $70 a barrel. The move was driven by renewed expectations that OPEC+ could raise production in November, exacerbating concerns of a supply glut just as demand signals remain patchy.

Washington Watch — Shutdown Talks at Critical Stage

US political risk remains front and center. President Trump is set to meet congressional leaders today, just hours before federal funding runs out on October 1. The proposed stopgap bill would only extend funding until mid-November, and deep divisions remain over healthcare subsidies and budget cuts. Democrats want to see those restored, while Republicans insist such negotiations can happen later.

Failure to reach an agreement risks a government shutdown, with the administration already threatening mass federal worker layoffs. A shutdown could delay important data releases, complicating the Fed’s policy path at a time when officials are leaning toward further easing to support employment.

Corporate Highlights

• AstraZeneca is preparing a secondary listing on the New York Stock Exchange while keeping its UK base, in a bid to broaden its investor base.
• Jaguar Land Rover is seeking $2.7 billion in emergency funding following a cyberattack that halted production.
• Sony Financial Group rallied on debut in Tokyo after a rare spinoff from Sony Corp., which is sharpening focus on entertainment and image sensors.

Alibaba advanced on renewed optimism for its cloud and AI businesses.

Key Events to Watch This Week

• US Nonfarm Payrolls report on Friday, a crucial input for the Fed’s next policy move.
• Ongoing negotiations in Washington to avert a government shutdown.
• OPEC+ deliberations ahead of a possible production hike in November.

Markets are balancing optimism from stronger equity performance and gold’s safe-haven surge with the risks of political brinkmanship in Washington and renewed volatility in oil. The week’s US jobs data will be critical in shaping Fed expectations, but a shutdown could cloud visibility just as investors search for clarity.