October opened trading with a bleak mood as concerns about the government shutdown issue in the United States (US) continue to engulf the market at this time.
Current developments, Congress has still failed to approve new funding to continue government operations.
In the House of Representatives, a short-term bill was passed to maintain funding until November 21, but failed to gain support from the Senate due to insufficient votes.
The US government was instructed to prepare an orderly shutdown plan (shutdown contingency plans) with non-essential operations that will be temporarily halted.
Important sectors such as defense, national security and public health will still continue as usual, but the number of employees will likely be reduced.
Analysts are beginning to see the negative effects that will arise from the start of this government shutdown.
It is feared that more than 750,000 government employees will face unpaid leave and if the shutdown continues for a longer period, the risk of permanent layoffs may occur.
The US economy will begin to show signs of a slowdown, affecting consumer spending, investment and overall confidence.
Therefore, Democrats and Republicans are urged to reach a negotiated agreement immediately so that government funding can be resumed.
