Daily summary: Indices flat as shutdown persists, dollar rebounds, Bitcoin around 120K (02.10.2025)

The U.S. government remains shut down for the second day, and the deepening stalemate is keeping investors from buying into the stock market. Today’s cash session ends virtually unchanged. Indexes show minor moves of +/-0.05%, with the exception of the US100, which gained 0.30%.

The Trump administration froze $26 billion allocated to Democrat-leaning states (including transportation projects in New York and green investments) and also signaled the possibility of federal layoffs. Capitol Hill remains paralyzed after failed Senate votes. Democrats accuse the White House of using the shutdown as a pressure tool, while Republicans claim Democrats are blocking routine funding. Trump described the moment as an opportunity for cuts in “Democratic agencies,” suggesting the prospect of a prolonged confrontation.

Because of the shutdown, this week’s jobless claims were not released. Layoffs in the U.S. economy totaled 54,064 in September compared with 85,979 previously (a drop of more than 25%) but remain high. The market did not expect tomorrow’s NFP labor report to be published, which led investors to pay more attention to today’s Challenger report. However, the Bureau of Labor Statistics just confirmed its readiness to release NFP data on schedule.

European equities mostly closed in the green (EU50: +0.8%), led by Germany’s DAX and France’s CAC40 (DE40, FRA40: +0.9%). Weaker performance was seen in Milan (ITA40: -0.1%), London (UK100: -0.35%), and Madrid (SPA35: -0.5%).

The dollar index snaps a four-day losing streak, rebounding 0.15% despite early-session weakness. The weakest G10 currencies are the Nordic ones (USDNOK: +0.8%, USDSEK: +0.45%), pressured by falling oil prices. AUDUSD lost 0.3% on weakness in Australia’s export commodities (iron ore, coal). EURUSD slipped 0.1% to 1.1712.

Eurozone unemployment came in at 6.3%, above expectations of 6.2% and the previous 6.2%.

Brent and WTI crude declined for the fourth consecutive day, extending losses by another 1.9%. Natural gas gained after a smaller-than-expected inventory build (53 BCF vs 64 BCF consensus), though gains were quickly trimmed to +0.5%.

Bitcoin is testing resistance around $120,000 today. At the time of publication, the digital currency is up 1.00% to $119,700, though the daily high has already reached $120,300, marking a 1.50% increase. Ethereum is also having a strong day, rising 2.25% to $4,447, while the market cap of other altcoins is up 1.70% to $1.13 trillion.