The September Stock Rally Ends as Gold Pauses – Europe Market Wrap
Stocks and the currency fell as the growing threat of a US government shutdown weighed on most asset groups. Gold’s record- breaking rally came to a halt.
Gold dipped to over $3,800 per ounce after reaching a new all-time high earlier Tuesday. After rising more than 10% this month on expectations of US interest rate cuts and haven demand, traders anticipated that Chinese investors reduced holdings ahead of the Golden Week holiday.
US market futures have weakened alongside European stocks. BHP slumped in London after China’s state-owned iron ore supplier temporarily suspended purchases from the Australian miner. The Dollar fell, erasing September’s gains. Treasuries were expected to close out a third consecutive quarter of gains.
Traders are looking ahead to a succession of US labour reports due this week to evaluate the Fed’s next move, with the release of Friday’s major payrolls report called into question due to a budget deadlock in Congress. The concern comes as the S&P 500 is on track for its best September in 15 years, boosted by looser policy, solid earnings, and excitement about AI.
