The U.S. federal government has "shut down" again after seven years, resulting in the suspension or delay of some public services and the release of economic data has also been affected. Analysts believe that the "shutdown" will not only have a negative impact on the U.S. economy, but will also affect U.S. import and export trade and investment and other fields, shaking companies 'confidence in the U.S. market.

Influenced by the U.S. federal government¡¯s ¡°stop-down¡±, most of the employees of several key financial regulators, including the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission, were forced to take ¡°paid leave¡± from 1st.

During this period, the stock exchange will suspend the acceptance of the first public offering, i.e. the application for an IPO, and the listing process of many companies will be forced to delay, thereby damaging the sentiment of investors.

There are UK investment agencies say that the current global asset market is overvalued and lacks space for error, so the negative events such as the U.S. federal government "stop" will exacerbate investors' concerns about risk and financial market turmoil, suppress global market risk preference sentiment, so that capital turns to commodities such as precious metals, in the short term leading to rising prices of safe assets such as gold.

The government's "stop" affects the normal operation of U.S. import and export trade

In terms of international trade, customs will not close during the "shutdown" of the U.S. federal government, but many technicians will take leave without pay. This means that due to insufficient personnel, new certifications, approvals, and background checks will be stopped, and traders will encounter trouble in applying for import and export licenses. At the same time, although goods can be cleared through customs clearance, documents and inspections will be delayed, posing risks to the import of perishable goods, medicines, etc.

During the last U.S. government ¡°stop¡± in 2018, food and wine import and export procedures were delayed significantly, causing losses to traders. In the U.S. busiest ports, Los Angeles Port and Long Beach Port, freight stop times increased by 15% to 20%.

Government "shutdown" shakes corporate confidence in the US market

On the other hand, the "stop" will cause a large number of economic data to be postponed or even cancelled, which includes not only employment, goods and other data with the United States, but also includes the US international trade situation, import and export price trends, etc., the lack of data will obviously bring uncertainty to many foreign companies in the US market operation.

Analysts believe that the "shutdown" has exacerbated the existing "sense of insecurity" in the world economy, and any delay may also lead to a series of economic consequences. Take Europe as an example. If it is "shut down" for two weeks, the EU economy will lose 4 billion euros. If it is "shut down" for eight weeks, the EU's losses will expand to 16 billion euros.