Markets Brace For Delayed U.S. Data As Holiday Liquidity Thins

Global markets traded cautiously on Tuesday as investors focused on the continued delay of key U.S. economic releases—data now weeks overdue due to the prolonged government shutdown. With liquidity thinning ahead of the holiday period, even small macro headlines triggered outsized market reactions.

The delayed reports include nonfarm payrolls, CPI, PPI, retail sales, and housing data—a cluster of indicators that markets rely on to gauge economic momentum and shape expectations for Federal Reserve policy. Their absence has left traders navigating with limited visibility, adding uncertainty to rate forecasts for early 2026.

Equity markets were mixed.

U.S. futures hovered near flat after Monday’s pullback, while European indices saw modest gains led by industrials and financials. Asian markets slipped slightly as weaker regional demand forecasts weighed on sentiment.

Bond markets reflected the uncertainty.

Treasury yields edged lower as traders sought safety, while corporate credit spreads widened for the first time this month—an early sign of caution returning to funding markets.

In currencies, the dollar traded narrowly but remained vulnerable, softening against the yen and Swiss franc as safe-haven flows picked up. The euro held firm on improving sentiment in the region, while commodity-linked currencies were mixed, influenced by range-bound oil and metals prices.

Gold gained modestly, supported by declining yields and ongoing macro opacity, with traders gravitating toward defensive positioning ahead of the Fed’s policy announcement.

With no major U.S. data expected until the shutdown ends, markets may remain unusually sensitive to speculation and central-bank commentary. Traders now face a rare environment where sentiment—not statistics—sets the tone.