The risk of a US government shutdown is casting a shadow over global markets, with Asian markets tracking Wall Street’s cautious optimism. While US inflation data has been reassuring, the political gridlock in Washington D.C. poses a significant external risk. A shutdown could disrupt economic activity and create uncertainty, potentially leading to market volatility. Investors should be prepared for fluctuations as the situation unfolds. The outcome of political negotiations on funding will be a critical determinant of market sentiment in the short term.