Last week’s backdrop was shaped by the end of the 43-day US government shutdown and cautious tone from central banks. The funding extension cleared a key uncertainty but created a backlog of economic data, with the October CPI report cancelled.
The biggest story this week was the end of the US government shutdown. Congress approved a continuing funding resolution late Wednesday, allowing federal agencies to reopen and workers to be paid back wages.
Markets grappled with mixed economic signals and missing data last week as an ongoing US government shutdown delayed key reports. Investors saw conflicting readings on the labour market – private payrolls rebounded by +42,000 in October according to ADP, but a separate survey showed layoffs surging to 153,000, the highest monthly total since 2003.
The final week of October delivered a mix of central bank decisions, earnings results, and macroeconomic data. In the US, the Fed cut interest rates by 25 basis points at its 29-30 October meeting, lowering the target range to 3.75%-4.00%.
The week was dominated by political uncertainty and mixed data across economies. In the US, a partial government shutdown dragged on into its third week, delaying many economic releases. Lawmakers hinted at possible resolution, but no breakthrough emerged before the weekend.
