The US Government shutdown dominated markets overnight. The Democrats and Republicans could not reach an agreement over the budget, and the Government was forced to shut-down. This is highly dramatic amongst the media and in Washington, but was brushed off by markets, with equities and bonds steady. This may interfere with the release of the important Non-Farm Payroll number, expected tomorrow. EU CPI data confirmed inflation is once again on the rise in Europe. This will be of major concern to Central Banks, especially the ECB. The US Dollar was steady, with the EUR trading above 1.1700, while the GBP pushed above 1.3450.
The reserve was steady, with the AUD holding 0.6600, while the NZD held 0.5800. The Bank of Japan released the Tankan Report, which confirmed a solid performance in the Manufacturing sector, while the Central Bank manages inflation problems.
