The US government shutdown extended until at least Monday. Silver prices hit new records

As of Thursday, the Dow Jones Index (US30) fell by 0.65%, the S&P 500 (US500) dropped by 0.63%, and the tech-heavy Nasdaq (US100) closed down 0.47%. The ongoing US government shutdown continues to weigh on market sentiment and delay the release of key economic reports. The US Senate failed for the 10th time to pass a government funding bill, extending the shutdown at least until Monday.

The Mexican peso appreciated to 18.40 per US dollar. The currency’s rise is linked to growing expectations of monetary easing by the Federal Reserve, following recent comments from Chair Jerome Powell indicating signs of labor market weakness. These signals have weakened support for the dollar and narrowed the gap between US and Mexican monetary policies. Domestically, Mexico’s inflation accelerated to 3.76% in September, remaining within Banxico’s target range, reinforcing confidence that the central bank can continue its easing cycle.

On Thursday, European indices posted gains: Germany’s DAX (DE40) rose by 0.38%, France’s CAC 40 (FR40) closed up 1.38%, Spain’s IBEX35 (ES35) gained 0.48%, and the UK’s FTSE 100 (UK100) ended 0.12% higher. The market was supported by reduced political uncertainty in France after the government survived a no-confidence vote.

WTI crude fell to $57.5 per barrel on Thursday, marking a five-month low. The decline was driven by stronger-than-expected growth in US oil inventories, which rose by 3.524 million barrels, intensifying concerns about weakening global demand amid ongoing US-China trade tensions.

Silver prices (XAG/USD) are trading at record highs above $54 per ounce. The metal is supported by rising gold prices and a tightening global supply amid growing market instability. Elevated geopolitical risks and concerns over rising government spending and debt are also driving capital flows into safe-haven assets like silver.

Asian markets mostly rose on Thursday: Japan’s Nikkei 225 (JP225) gained 1.27%, China’s FTSE China A50 (CHA50) rose 0.81%, Hong Kong’s Hang Seng (HK50) dipped 0.09%, and Australia’s ASX 200 (AU200) posted a 0.76% gain. 

Pressure on the Hang Seng came from declines in tech, consumer, and real estate stocks. Investors remain cautious ahead of the 4th Plenary Session of the CPC Central Committee, scheduled for October 20–23, where the new five-year development plan for 2026–2030 is expected to be unveiled. Asian indices largely ignored comments from US Treasury Secretary Scott Bessent, who suggested the US may extend its pause on tariffs against Chinese goods by more than three months if China eases export restrictions on rare earth metals.

Bank of Japan (BoJ) Governor Kazuo Ueda stated Thursday that the central bank will carefully analyze a wide range of data, including insights from his visit to Washington, before deciding on a potential interest rate hike in October. On Japan’s domestic political front, the Liberal Democratic Party (LDP) and the Constitutional Democratic Party (CDP) reached a preliminary agreement to hold a parliamentary vote on October 21 to elect a new prime minister.