Financial Markets - Next Week

What You Need to Know

The Context

Markets largely ignored the drama in Washington as the U.S. government shutdown failed to unsettle investors. Equities pushed to new highs, bond yields slipped slightly, and even gold and Bitcoin extended their record-setting streaks—symbols of what some analysts call the “debasement trade.” The dollar, however, remained weak, still trading below its spring levels.

The absence of the official jobs report left economists relying on private and regional indicators. Recent ISM data showed a slowing service sector and continued manufacturing weakness, offset by modest signs of easing inflation. Abroad, the picture was more mixed: U.K. food prices climbed again, Turkey’s inflation beat forecasts, and Argentina drew IMF attention as markets tested the country’s support framework.

The Week Ahead

With Washington’s funding standoff unresolved, the longer the shutdown lasts, the greater the hit to growth—and the wider the “data gap.” Key reports su…