Investing.com - U.S. stock markets opened marginally higher on Tuesday, despite concerns a partial shutdown of the U.S. government will create a drag on fourth quarter U.S. economic growth.
During early U.S. trade, the Dow Jones Industrial Average inched up 0.1%, the S&P 500 index added 0.3%, while the Nasdaq Composite index advanced 0.45%.
The U.S. government began a partial shutdown after lawmakers failed to reach an agreement on a new budget before Monday's midnight deadline. It is the first government shutdown in the U.S. since 1996.
Lawmakers are expected to continue negotiating a funding measure later in the day in hopes of reaching a compromise.
Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.
A partial shutdown of U.S. federal government operations was expected to delay economic data releases this week, including Friday's highly-anticipated non-farm payrolls report.
According to an Obama administration official, the Labor Department will postpone the release of its monthly employment report scheduled for October 4, if the federal government remains closed.
In earnings news, Walgreen, the biggest U.S. drugstore chain, saw shares rally 4.8% after reporting fourth quarter profit that came broadly in line with market expectations.
Pharmaceutical giant Merck saw shares jump 3% after the company announced an overhaul that will eliminate 8,500 workers.
Shares of Ford and General Motors advanced 1.9% and 0.4% respectively, with major automakers scheduled to release monthly auto sales data throughout the day.
Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 rose 0.75%, France’s CAC 40 added 0.7%, Germany's DAX tacked on 0.45%, while Britain's FTSE 100 shed 0.3%.
Data released on Tuesday showed that the final reading of the euro zone manufacturing purchasing managers’ index was unchanged at 51.1 in September, in line with forecasts.
Separately, data showed that the number of unemployed people in Germany rose for the second consecutive month in September, while the country’s jobless rate rose to 6.9% from 6.8% in August.
Eurostat said the total euro zone unemployment rate was 12.0% last month, while August’s rate was revised down to 12% from 12.1%.
Meanwhile, in the U.K., data showed that manufacturing activity slowed slightly in September, but remained close to August’s two-and-a-half year highs.
Markit said that its U.K. manufacturing PMI fell to 56.7 in September from a downwardly revised 57.1 in August. Analysts had expected the index to tick up to 57.3.
During the Asian trading session, Australia’s ASX/200 Index ended down 0.18%, Japan’s Nikkei 225 Index closed 0.2% higher, while Hong Kong's Hang Seng Index remained closed for a public holiday.
Japanese Prime Minister Shinzo Abe announced plans to raise the sales tax to 8% from 5%, starting in April. Abe also said he will unveil a stimulus package designed to ease the impact of the increased tax.
Meanwhile, in Australia, the ASX/200 Index edged lower after the Reserve Bank of Australia held its benchmark interest rate at a record low of 2.5% earlier in the session.
During early U.S. trade, the Dow Jones Industrial Average inched up 0.1%, the S&P 500 index added 0.3%, while the Nasdaq Composite index advanced 0.45%.
The U.S. government began a partial shutdown after lawmakers failed to reach an agreement on a new budget before Monday's midnight deadline. It is the first government shutdown in the U.S. since 1996.
Lawmakers are expected to continue negotiating a funding measure later in the day in hopes of reaching a compromise.
Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.
A partial shutdown of U.S. federal government operations was expected to delay economic data releases this week, including Friday's highly-anticipated non-farm payrolls report.
According to an Obama administration official, the Labor Department will postpone the release of its monthly employment report scheduled for October 4, if the federal government remains closed.
In earnings news, Walgreen, the biggest U.S. drugstore chain, saw shares rally 4.8% after reporting fourth quarter profit that came broadly in line with market expectations.
Pharmaceutical giant Merck saw shares jump 3% after the company announced an overhaul that will eliminate 8,500 workers.
Shares of Ford and General Motors advanced 1.9% and 0.4% respectively, with major automakers scheduled to release monthly auto sales data throughout the day.
Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 rose 0.75%, France’s CAC 40 added 0.7%, Germany's DAX tacked on 0.45%, while Britain's FTSE 100 shed 0.3%.
Data released on Tuesday showed that the final reading of the euro zone manufacturing purchasing managers’ index was unchanged at 51.1 in September, in line with forecasts.
Separately, data showed that the number of unemployed people in Germany rose for the second consecutive month in September, while the country’s jobless rate rose to 6.9% from 6.8% in August.
Eurostat said the total euro zone unemployment rate was 12.0% last month, while August’s rate was revised down to 12% from 12.1%.
Meanwhile, in the U.K., data showed that manufacturing activity slowed slightly in September, but remained close to August’s two-and-a-half year highs.
Markit said that its U.K. manufacturing PMI fell to 56.7 in September from a downwardly revised 57.1 in August. Analysts had expected the index to tick up to 57.3.
During the Asian trading session, Australia’s ASX/200 Index ended down 0.18%, Japan’s Nikkei 225 Index closed 0.2% higher, while Hong Kong's Hang Seng Index remained closed for a public holiday.
Japanese Prime Minister Shinzo Abe announced plans to raise the sales tax to 8% from 5%, starting in April. Abe also said he will unveil a stimulus package designed to ease the impact of the increased tax.
Meanwhile, in Australia, the ASX/200 Index edged lower after the Reserve Bank of Australia held its benchmark interest rate at a record low of 2.5% earlier in the session.