US prepares for government shutdown: what investors need to know this week

This week's key for Wall Street should be the U.S. Bureau of Labor Statistics (BLS) employment report - if, of course, the agency itself will work, Barron's ironizes. U.S. congressmen cannot agree on funding for government agencies, and if this cannot be done by the end of the month, many federal agencies will suspend operations on October 1.
In the eurozone, inflation data will be released this week, while Asian countries will release data on industrial and services business activity.
A small amount of corporate reporting is expected - the main attention will be focused on quarterly results of Nike. A full-fledged start to the season of reports for the third quarter will be given by major banks in mid-October, notes Yahoo Finance.
On Monday, September 29, the U.S. National Association of Realtors will release data on pending home sales transactions for August. According to the consensus forecast, the indicator is expected to increase by 0.1% compared to the previous month after a decrease of 0.4% in July.
Carnival will report quarterly results.
On Tuesday, September 30, the BLS will release the U.S. Employment and Labor Turnover Survey (JOLTS). The consensus forecast is for 7.1 million openings as of the last business day of August. If confirmed, the figure will be 81k fewer than in July.
Conference Board will present the U.S. consumer confidence index for September. The expected value is 95.8, which is two points below the August level.
The U.S. government is approaching another shutdown: it will begin at midnight from Tuesday to Wednesday if the houses of Congress fail to agree on funding for government agencies. "The only real chance of avoiding a shutdown is for the Senate to pass a House-approved [temporary funding extension resolution]," Yahoo Finance quoted Fundstrat strategist Tom Block as saying. The shutdown of US federal agencies threatens to disrupt the timing of statistical disclosure and could make it difficult to assess the economic situation before the Fed's next interest rate meeting, Yahoo Finance warns.
China will publish September indexes of business activity in industry and services. They will help investors form a preliminary picture of how the world's second economy felt in September, The Wall Street Journal reports.
The financials will be presented by Nike, which is trying to rebuild sales and revitalize the business under a new CEO.
On Wednesday, October 1, consulting company ADP will publish a report on employment in the U.S. private sector for September. Wall Street expects an increase in the number of jobs by 50 thousand after an increase of 54 thousand in August.
The Institute for Supply Management (ISM) will present the U.S. manufacturing sector business activity index (PMI) for September. The consensus forecast is 49.2 points, which is half a point higher than in August.
In Asia, business activity indices will be released by South Korea, Taiwan, Japan and India.
The eurozone will release its preliminary inflation estimate for September. Investec forecasts a slight increase in consumer prices, but believes that this will not affect the European Central Bank's intention to keep interest rates at current levels in the coming months.
Quarterly results will be reported by Conagra Brands.
On Thursday, October 2, the U.S. Department of Labor will present data on initial applications for unemployment benefits for the week ended September 27. In the previous week, the number of applications amounted to 218 thousand - the lowest level since mid-July.
Switzerland will publish inflation data for September. At the last meeting, the country's central bank left interest rates at 0% and may make them negative if necessary.
On Friday, October 3, the BLS will release the U.S. employment report for September. Economists on average expect the number of jobs in the non-farm sector to increase by 50 thousand after an increase of 22 thousand in August. The unemployment rate, according to the consensus forecast, will remain at 4.3%. The weakening labor market has been cited by several Fed governors as an argument for an accelerated interest rate cut. However, the unemployment rate is low by historical standards - businesses are not laying off employees, but they are not hiring either, Barron's noted.
ISM will publish the index of business activity in the U.S. service sector for September. The consensus forecast is 52 points, the same as in August.
This article was AI-translated and verified by a human editor