Watchers have warned that businesses are being wracked by doubt amid fears the increasing trade war between big global economies could spark prices, with several investors worrying about a possible slowdown in the United States.
Wall Street has been hammered, with the S&, P 500 slipping into a adjustment Thursday having fallen more than 10 per share from its current peak- a record great touched only last month.
Silver, a shelter in times of tumult, hit a record of US$ 2, 990.21 Friday leading to a jump into health.
But, Asian markets enjoyed a broadly beneficial Friday amid hopes Congress will go a Bill to minimize a terrible government shutdown.
With only hours until a date to force a State spending Bill through, Senate Democratic head Chuck Schumer dropped his danger to prevent it.
The deal would keep the lights on through September, but Democrats have come under stress from their community to challenge a program they say is full of dangerous spending cuts.
Schumer claimed Trump and Musk- who runs the Department of Government Performance ( Expand ) that has gutted several major departments- were hoping for the authorities to grind to a halt.
” A shutdown may give Donald Trump and Elon Musk carte blanche to destroy essential government service at a significantly faster rate than they can best then… with nothing left at the companies to check them”, he warned.
Hong Kong rose more than 1 per cent, recouping some of the losses suffered over the week.
However, major conglomerate CK Hutchison Holdings- owned by tycoon Li Ka-shing- sank 7 per cent after Chinese officials in Hong Kong reposted an attack on the firm over its sale of a controlling stake in Panama ports under pressure from Trump.
It had surged 25 per cent earlier this month after the sale.
Shanghai, Tokyo, Wellington and Manila also advanced. There were losses in Singapore, Seoul, Taipei and Jakarta.
Chris Beauchamp, chief market analyst at IG, said a US government shutdown could be costly.
” The 2018-2019 shutdown… resulted in an estimated US$ 11 billion loss to the US economy, with US$ 3 billion considered permanent”, he wrote in a note.
” Current market participants are clearly factoring in similar potential damage if lawmakers fail to reach an agreement.
” A government shutdown, combined with existing trade tensions and tariffs, could exacerbate market volatility. Investors are already concerned about the economic impact of ongoing tariffs, which have contributed to declines in major stock indices in recent sessions.”
Dealers were also watching developments in Europe after Russian President Vladimir Putin said he had” serious questions” about Washington’s plan for a 30-day ceasefire in Ukraine. However, he said he was ready to discuss it with his American counterpart.