US, European stocks hit record highs as investors shrug off US shutdown impact

• Investors sanguine about impact of US shutdown
• US, European stocks at new all-time high
• Two more Fed cuts expected this year after weak ADP jobs report
• Gold hovers near record highs

 Global stocks gained and gold traded near record highs on Thursday as investors took in their stride the potential ramifications of a U.S. government shutdown, while a weak private U.S. labor market report bolstered bets for Federal Reserve rate cuts.

Investors have been largely sanguine about the shutdown’s impact on the markets and economy, helped by data of past shutdowns that showed limited fallouts. Morgan Stanley, for example, said U.S. share prices have risen an average 4.4% while real U.S. economic growth has expanded 2.2% during shutdowns in the past.