Markets Are Up In Europe As Day 3 Of The Shutdown Begins

Markets are up slightly across Europe.

Britain’s FTSE 100 is up 0.2%.

France’s CAC40 is down 0.2%.

Germany’s DAX is flat.

Spain’s IBEX is up 0.1%.

Italy’s FTSE MIB is up 0.1%.

It’s day three of the U.S. government shutdown, and the markets have calmed down a bit. But Wednesday’s sell-off reminds us that this might not be a smooth ride.

From Societe Generale’s Alvin Tan and Eamon Aghdasi.

“A whiff of risk-off in the air yesterday, with yen being the top performer while AUD and NZD sold off slightly. ADP numbers were also softer than expected at 166K after a downwardly revised 159K for August. The US 10-year yield fell briefly below 2.6% intraday, and so the dollar remained in the back foot as the US shutdown persisted into its third day. The USD will remain under pressure so long as the US fiscal uncertainties reign.”

U.S. futures are down slightly.

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