Markets Mixed: Eurozone Inflation Surges, US Shutdown Uncertainty Boosts Gold
Markets reacted to a mix of news this week, with inflation in the Eurozone rising and the US government shutdown causing uncertainty. The Euro Stoxx and Dax gained on strong pharmaceutical stocks, while gold hit a record high due to investor uncertainty.
Inflation in the Eurozone climbed to 2.2% in September, surpassing the European Central Bank's target. Despite this, the euro remained steady against the dollar at $1.1733. Meanwhile, the US government shutdown had a limited impact on bond markets, with yields showing only minor movements.
European stock markets saw gains, with the Euro Stoxx up 1% and the Dax up 1% to 24,114 points. This was driven by strong performances from pharmaceutical stocks. Eli Lilly and Amgen agreed to lower prices for the Medicaid program, with reductions of up to 30% already implemented. Pfizer also secured a deal with the US government, boosting the healthcare sector.
Adidas and Puma shares rose following better-than-expected results from Nike. However, DZ Bank warned that the US government shutdown could serve as a 'possible stress test' for stock markets. Historically, the S&P 500 has remained robust during shutdowns, but the current situation may be different.
Investors sought safe havens, driving gold prices to a new record high of $3,895 per troy ounce.
Inflation in the Eurozone rose, while the US government shutdown caused limited market impact. European stocks gained on pharmaceutical strength, but the shutdown could still pose risks. Gold hit a record high due to investor uncertainty.
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