The prospect of a US Federal government shutdown is likely to undermine equity prices further in the coming days, despite the possibility that the resulting uncertainty could prevent the US central bank from tapering its asset purchases at all this year. In contrast, Treasuries and gold should benefit from a revival of safe haven demand. But the upside for both is probably much less now than during the last US debt-ceiling crisis in 2011, when the euro-zone was also in turmoil.
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