Global shares mostly decline as markets brace for a possible US
government shutdown
[September 30, 2025] By
YURI KAGEYAMA
TOKYO (AP) — Global shares were mostly lower in narrow trading Tuesday
as investors braced for a possible U.S. government shutdown.
France's CAC 40 dipped 0.5% in early trading to 7,845.73. Germany's DAX
lost 0.1% to 23,718.17. Britain's FTSE 100 lost 0.2% to 9,282.13. U.S.
shares were set to drift lower with Dow futures down 0.2% at 46,518.00.
S&P 500 futures fell 0.2% to 6,703.75.
In Asia, Japan's benchmark Nikkei 225 declined nearly 0.3% to finish at
44,932.63.
China reported lackluster data on factory activity for September that
reflect persistent weakness in the world's second largest economy as
trade tensions with the U.S. weigh on exports.
Hong Kong’s Hang Seng gained 0.9% to 26,855.56. The Shanghai Composite
index added 0.5% to 3,882.78. Australia's S&P/ASX 200 edged down 0.2% to
8,848.80. South Korea's Kospi slipped nearly 0.2% to 3,424.60.
The U.S. federal government is nearing a budget deadline that could
result in its shutdown.
Past shutdowns have been short-lived and had minimal impact on markets
and the economy. But if the stalemate between Democratic and Republican
lawmakers persists, that could delay the collection and release of
economic data, such as on jobs and inflation.
This shutdown may also be different because the White House may push for
large-scale firings of federal workers.
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A person walks in front of an electronic stock board showing Japan's
Nikkei 225 and New York Dow indexes at a securities firm Tuesday,
Sept. 30, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
 “It feels as though the market has
already flogged the government shutdown story from every conceivable
angle, the way traders circle a fading theme until there’s nothing
left but dust. Yet with the clock ticking down to less than 24 hours
before the doors are slated to close in Washington, the narrative
refuses to die,” said Stephen Innes. managing partner at SPI Asset
Management.
A report is due Friday about how many jobs U.S. employers created
and cut last month. The hope is that it will be balanced enough to
keep the Federal Reserve on track to continue cutting interest
rates.
If Friday’s job numbers prove too strong, they could make the Fed
less willing to cut rates. That could hurt stocks, which already
face criticism that they’ve become too expensive following their big
rally.
In energy trading, benchmark U.S. crude fell 97 cents to $62.48 a
barrel. Brent crude, the international standard, lost $1.02 to
$66.95 a barrel.
The U.S. dollar rose to 148.87 Japanese yen from 148.60 yen. The
euro cost $1.1761, up from $1.1727.
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