Pensions - Articles - US shutdown shrugged off as fresh records are set

 Matt Britzman, senior equity analyst, Hargreaves Lansdown: “London’s blue-chip index is on a prescription for success, extending all-time highs after yesterday’s dose of pharma strength led to the FTSE 100’s best session since July. Pharma stocks were the standout, racing higher on news that Pfizer struck a deal with the US administration to slash drug prices and bypass tariffs. The move provided long-awaited clarity on pricing and lifted hopes that others could follow. Today’s big results come from Tesco, where the grocery giant is proving that every little helps as it battles hard against tough competition.

 The S&P 500 and Nasdaq 100 closed at fresh all-time highs as investors shrugged off Washington gridlock and focused on softer labour data that reinforced expectations for Fed rate cuts. ADP’s surprise decline pushed odds of an October cut near 100%, sending short-dated Treasuries higher while equities drew support from easing policy bets and optimism ahead of earnings season. Markets will likely give the shutdown a week or two of leeway before any cracks start to show.