The Dow Jones Industrial Average (DJIA) flattened on Thursday, sticking close to the 46,500 region as equity markets hunker down to wait out the US federal government’s shutdown.
The US government has officially shutdown. USD and US equity futures are down. If the shutdown is brief, the Fed will ignore it. However, a prolong shutdown (more than two weeks), increases the downside risk to growth and raises the likelihood of a more accommodative Fed.
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, trades on a stronger note near 97.30 during the Asian trading hours on Tuesday.