U.S. Government Shutdown Looms Amid Global Market Turmoil

Global stocks fell as the U.S. faced a potential government shutdown, with Trump's tariff threats further unsettling markets. Political volatility highlighted by Trump's policies impacted inflation expectations and affected markets globally, increasing apprehension about the Federal Reserve's interest rate decisions for the following year.

Global stocks experienced a significant decline on Friday, driven by looming concerns of a potential U.S. government shutdown.

The market turbulence was exacerbated by former President Donald Trump's threats to impose tariffs on European goods if the region did not boost its purchase of U.S. oil and gas.

This has led to heightened political uncertainty, impacting investor expectations regarding future Federal Reserve interest rate decisions.

(With inputs from agencies.)