On Thursday, the dollar and stock called for recording height as investors rejected the US government’s closure and labor market weakness.
The three major US index closed at record altitude, with Nudea adding a fresh mutual height and an increase in Intel by a 50 % increase in the last month.
Treasury Secretary Secretary Scott Basant has taken advantage despite the warning that economic growth can be “affected” if the shutdown continues, and has decreased by 58 % in the annual history of 2023-it is the lowest since 2009.
Nigel Green, chief executive of the World Financial Advisory Company Daver groupSays: “Markets are telling us that they are far more focusing on the power of earning, policy direction and liquidity than Washington’s deadlock.
“Shutdown is a temporary noise, not structural shock. Investors are watching it.”
The political background has also had little impact on the dollar. Greenback gained a higher position against sensitive currencies, indicating how investors are in place of basic principles rather than headlines.
Dewar’s chief executive noted, “Historically, the sanctions have led to the fluctuations in bonds and equity, but its effects are fleet, and the markets are once again disrupting it.”
Labor market data is increasing but confidence is not shaking. A recent report shows that since the financial crisis, it has been declining to get new services at the bottom. Nevertheless, a new set of indicators compiled by the Chicago Feed puts unemployment at 4.34 %, which details the economy of Fed Chair Jerome Powell’s “low fire, low fare” economy.
Nigel Green explained: “The benefit of investors is that the creation of the job is decreasing, but unemployment remains. It indicates that it can cool down a economy without breaking down, reinforcing the expectation that the central bank will help the situation.”
Corporate income is a key driver. The world’s most valuable company, NVIDIA, sets records because investors bet on its dominance in AI. Intel, while still far below its 2021 heights, has presented a 50 % rally in the past month thanks to a series of successful tie -ups over the past month.
He said the stock reinforces the belief that corporate performance is much higher than weak macro data.
He commented, “Tech leadership is running the markets. These companies have taken a central position in development, and their income power is pulling investors. As long as the story is held, equity is flexible.”
Speed is also important. With a benchmark at record height, investors are reluctant to step aside.
Internationally, investor flow reflects the same approach. European equality has extended Wall Street upwards, while Asian markets are helping in the fields of growth through capital circulation.
The emerging market is under pressure on currencies as the dollar is strong, but in these regions, equity markets continue to attract global funds to earn more profit.
“Investors are not paralyzed by Washington’s grid lock. They are looking at a big picture, which includes liquidity, income and positioning in 2026.
Nigel Green says, “The shutdown will come and go. What does it matter where the money is flowing, and now it is clearly in equity.”
Important factors are the surprise of inflation, geographical political shock, or misconduct in the wages market. But with the stable and inflation trend of unemployment, investors consider the risks to be manageable.
Nigel Green concludes: “The long -term trend remains intact. Equity markets are scaling new peaks, the dollar is strong, and demand for danger assets.
“Unless there is a real break in the speed of income or external shock, it seems that investors will continue to return the rally.”
Dour Group is one of the world’s largest independent advisers for international, local widespread, local rich, and high networking clients, global financial solutions. It has a network of offices worldwide, more than 80,000 clients, and B14bn under advice.
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