Company Interview / the open: ASX to slip, US government shutdown continues

The local market is set for a flat opening with ASX futures down just 4 points. This comes as global equity markets gained further overnight with investors prepared to take on more risk, despite the potential ramifications of the US government shutdown. 

Shutdowns in the past have typically had limited impact on the markets, with the S&P 500 finishing higher during every shutdown since 1995. On Wall Street overnight the major indices made modest gains but again closed at record highs led largely by the technology sector. Nvidia, Apple and Broadcom, were at the forefront of the gains, meanwhile Tesla ended down 5% for its biggest one-day loss since July. 

The US shutdown is impacting most government operations and has led to the temporary layoff of hundreds of thousands of workers, while President Trump is taking the opportunity to permanently dismiss some 300,000 workers by December.

The US dollar index is up 0.2% on the day, while the Euro fell after data showed the Eurozone unemployment rate in August rose to 6.3%. The Australian dollar has fallen back below 66 US cents.