Most Asian stock markets closed higher; US government shutdown threat drags down the dollar; spot gold surpasses $3,800.

On Monday, September 29, the US dollar fell due to risk factors related to a possible US government shutdown. Driven by the weaker dollar and expectations of further Fed rate cuts, gold prices broke through the key level of $3,800 per ounce for the first time. European stocks opened higher across the board, and most Asian stocks rose.

The Euro Stoxx 50 index opened up 0.33%, the UK FTSE 100 index up 0.34%, the French CAC 40 index up 0.36%, and the German DAX index up 0.41%.

In Asian stock markets, the Nikkei 225 fell 0.89% to 44,940.87, Korea's KOSPI rose 1.49% to 3,436.99, and the FTSE Straits Times Index rose 0.23% to 4,274.9.

The dollar index fell nearly 0.26% to 97.94. Metal commodities strengthened, spot gold hit a record high of $3,805.88 per ounce, spot silver soared over 2% to $46 per ounce, a fourteen-year high; platinum and palladium both rose, while Brent crude oil fell slightly by 0.03%.

The performance of the core markets is as follows:

Euro Stoxx 50 index opened up 0.33%.UK FTSE 100 index up 0.34%.French CAC 40 index up 0.36%.German DAX index up 0.41%.Nikkei 225 index down 0.8%.Korea KOSPI up 1.49% to 3,436.99, up 7.8% this month.FTSE Straits Times Index up 0.23% to 4,274.9.Dollar index down nearly 0.26% to 97.94Spot gold up 1.2% to $3,806.8 per ounce.Spot silver up 1.59% to $46.78 per ounce.Platinum up 3.4% to $1,622.04 per ounce.Palladium up 2.2% to $1,297.67 per ounce.Brent crude oil dipped slightly, down 0.03% to $68.53 per barrel.

Affected by the possible US government shutdown, the Euro Stoxx 50 index opened up 0.33%.

UK FTSE 100 index up 0.34%.

French CAC 40 index up 0.36%.

German DAX index up 0.41%.

Nikkei 225 index down 0.8%. Investors are watching the results of this weekend's Liberal Democratic Party leadership election, which will have an impact on fiscal and monetary policy.

Korea KOSPI up 1.49% to 3,436.99, with a month-to-date increase of 7.8%.

FTSE Straits Times Index up 0.23% to 4,274.9.

The dollar index, affected by the possible US government shutdown, fell nearly 0.26% to 97.94%. A government shutdown could delay the release of key employment data and cast a shadow over the Fed's monetary policy path. Later on Monday, Trump is scheduled to discuss extending government funding with congressional Democrat and Republican leaders. If no agreement is reached, the government will shut down starting Wednesday.

The combined impact of the possible US government shutdown and inflation data reinforcing expectations of Fed rate cuts has boosted safe-haven demand and, along with a low interest rate environment, lifted gold prices, with spot gold up 1.2% to $3,806.8 per ounce.

US economic data released last Friday showed that the 12-month personal consumption expenditures (PCE) price index rose from 2.6% to 2.7% in August, while core inflation remained stable at 2.9%, in line with market expectations. The market expects a 90% probability of a Fed rate cut in October, and about a 65% probability of another cut in December.

Spot silver up 1.59% to $46.78 per ounce.

Platinum up 3.4% to $1,622.04 per ounce.

Palladium up 2.2% to $1,297.67 per ounce.

Brent crude oil dipped slightly, down 0.03%.

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