U.S. Shutdown Becomes Longest in History

Tech weakness hit risk assets as the record U.S. shutdown clouded data and policy visibility. Asia watched Hong Kong’s summit for signals on cross‑border finance.

TL;DR:

• 🏛️ Record U.S. shutdown deepens
• 📉 Tech-led global selloff
• 🌏 Hong Kong summit signals recovery
• ⏳ Key data likely delayed

Record U.S. Shutdown Deepens

The federal shutdown reached day 36, now the longest in U.S. history, with roughly 900,000 federal workers affected and many services limited. Prolonged disruption raises growth risks and increases uncertainty around data, which typically weighs on risk sentiment. Traders stayed defensive as policy visibility narrowed. Source

Tech-Led Global Selloff

Equities slid in a tech-led downdraft, with names like Palantir under pressure, as political uncertainty and cautious signals from big bank CEOs spurred de-risking. The shutdown added a macro overhang, while debate inside the Fed over the rate path kept volatility bid. Flows favored defensives and cash-like instruments into the close. Source

Hong Kong Summit Signals Recovery

Global finance chiefs convened in Hong Kong, projecting cautious optimism about the city’s financial hub status amid easing U.S.–China tensions. Attendance from top firms signaled intent to re-engage, though structural challenges and geopolitics remain headwinds. Any sustained improvement could support Asia deal flow and regional listings. Source

Key Data Likely Delayed

The shutdown threatens timely release of October nonfarm payrolls and PCE data, pushing investors toward private proxies like ADP for labor signals. Data gaps can amplify swings around alternative releases and complicate Fed-tracking models. Expect choppier tape around today’s private reports if official prints slip. Source