Global equity markets and the dollar fell on Wednesday as the US government shutdown entered its second day and as data showed US private employers added fewer jobs than expected last month.
Although equities showed resilience on Tuesday on hopes the partial shutdown of the US government would be short-lived,just one day later concerns about the economic impact grew as no signs emerged of an end to the budget standoff in Washington.
Investors are also looking for an indication of how negotiations play out over the looming need to raise the governments debt ceiling. The debt ceiling is far more important,as it could lead to an unprecedented default by the US,which is considered unlikely.
MSCIs world equity index,which tracks shares in 45 countries,fell 0.28 percent to 383.55 one day after gaining 0.7 per cent. In Europe,the FTSEurofirst 300 index of top regional shares ended 0.7 per cent lower,while the euro zones blue-chip Euro STOXX 50 index was down 0.5 per cent.
The Dow Jones industrial average fell 72.67 points,or 0.48 per cent,at 15,119.03. The Standard & Poors 500 Index slid 4.88 points,or 0.29 per cent,at 1,690.12. The Nasdaq Composite Index lost 7.01 points,or 0.18 per cent,at 3,810.98.
The dollar index,which tracks the greenback against six major currencies,fell as low as 79.781,its lowest level since February. It was last trading at 79.905,down 0.29 per cent.
US added 1.66 lakh jobs in Sept
NEW YORK: US private employers added 1,66,000 jobs in September,according to payroll processor ADPs National Employment Report. Economists in a Reuters poll had expected a gain of 1,80,000 jobs. Augusts private payrolls gains were revised to 1,59,000 from the previously reported 1,76,000.