Markets face intensifying cross-currents as the U.S. government shutdown drags on, European politics deteriorate, and Japan edges toward a potential Abenomics revival. The Treasury is raising $275 B in bills this week despite the shutdown, with strong auction demand showing liquidity remains abundant. In Europe, French PM Sebastien Lecornu’s resignation deepens political instability, driving euro weakness. Meanwhile, in Japan, Sanae Takaichi’s lead in the presidential race signals the potential return of ultra-loose monetary policy — sparking a sharp yen selloff and reigniting the carry trade. Gold has broken $4,000 for the first time, underscoring surging safe-haven demand amid synchronized political shocks.
- U.S. Shutdown: Trump has not engaged Democrats on healthcare; crisis deepening.
- Treasury Issuance: $275B in bills this week; strong demand despite political stalemate.
- AMD Revolution: Landmark GPU deal with OpenAI could reshape AI hardware landscape.
- Abenomics Returns: Takaichi’s lead suggests YCC revival and renewed carry trade flows.
- European Crisis: Lecornu’s resignation fuels euro weakness amid EU political uncertainty.
- Gold Breakout: $4,000 milestone reached on synchronized geopolitical shocks.
- Technical Extremes: Multiple assets at extreme RSI levels — EUR/USD oversold, USD/JPY overbought.