US Department of Labour jobs numbers were slated to be published this Friday, but the shutdown means they won’t be available to help economists tease out more of what’s happening in the market.
But figures published by New Jersey-based payroll provider ADP on Wednesday showed that the US private sector shed 32,000 jobs in September, while pay rose 4.5pc year-on-year.
“Despite the strong economic growth we saw in the second quarter, this month’s release further validates what we’ve been seeing in the labour market, that US employers have been cautious with hiring,” said Dr Nela Richardson, chief economist, ADP.
The biggest losses were seen in leisure and hospitality, which lost 19,000 jobs. Professional and business services saw a 13,000 decline.
A previous estimate that 54,000 jobs had been created by the private sector in August, was revised to a 3,000 loss.
Traders sharply increased bets on a 25-basis-point rate cut in the interest rate by the US Federal Reserve at its next meeting.
“ADP may, for the first time, be a closer indicator of the true level of employment,” said Jamie Cox, managing partner at Harris Financial Group.
“The Trump administration’s policies are trying to transition a lot of the job growth out of the public sector into the private sector.”
By mid-morning in the US, the Dow Jones, Nasdaq and S&P 500 had all edged lower.
The dollar also fell against the euro and the Japanese yen, deepening its decline against major currencies this year. The dollar was worth about 97 euro cent in January. It’s now worth 85 cent.
Indices in Europe, including Ireland’s ISEQ, fared better than their US counterparts.
Near the close, the ISEQ All Share index was still up 0.15pc.
Gainers included AIB, which had advanced 2.3pc near the bell. Bank of Ireland was up 1.7pc and Cairn Homes was 1.6pc higher. Permanent TSB had shed 1.7pc as the end of the session neared.
Kerry Group retreated 2pc, as had shares in Glanbia.
Major European Indices, from the FTSE-100 to Germany’s DAX, Italy’s FTSE MIB and Spain’s Ibex 35 were all in positive territory.
The price of gold surged to a new record high as the US shutdown loomed. Oil prices slipped amid plans by the world’s oil producing club – Opec + – weighs boosting output and the demand outlook weakened.
European gas prices also weakened as inventories remain strong as the region approaches winter. Lower demand in Asia, particularly China, has also helped to curtail prices.