Stocks posted solid gains, shrugging off the U.S. government shutdown that began on Thursday. US equities appeared to draw support from the September private payrolls report from payroll processing firm ADP showing jobs lost. The labor market data seemingly made it more likely that the Fed will cut rates at its October meeting. The tech-heavy Nasdaq Composite Index outperformed, and growth stocks outpaced value. The Russell 2000 Index of small-cap stocks, which tend to benefit more from lower rates, easily outperformed the S&P 500 Index. In Europe, the STOXX Europe 600 Index ended 2.87% higher, reaching record levels. Japan’s stock markets registered mixed performance over the week, with the Nikkei 225 Index gaining 0.91% and the broader TOPIX Index down 1.82%. Mainland Chinese stock markets rose in a holiday-shortened week. In Hong Kong, the benchmark Hang Seng Index rose 3.88%, according to FactSet. On the fixed income side, U.S. Treasuries yields decreased along the range of maturities. WTI crude oil dropped over 7% after the OPEC+ group of major oil producing nations signaled that it will boost production in November. Other commodities fared much better, with gold gaining more than 3% to a new record high and up for the 7th straight week. Copper jumped over 7%. Bitcoin ripped higher this week, testing its record highs with the best week since the US elections. Meanwhile, the dollar ended lower against these alternative assets obviously as well as its fiat peers.
Have a great week-end
Charles for the team