A look at the day ahead in European and global markets from

Rocky Swift

With a U.S. government shutdown and the imposition of

sweeping tariffs looming, President Donald Trump knew just what

markets needed.

More tariffs.

In what's becoming a regular ritual, Asian markets were the

first to digest overnight announcements from the White House on

new U.S. import duties, this time on bathroom vanities, lumber,

cabinets, and other goods.

Trump's proclamation cited "national defence" for the tariffs on

foreign furniture, due to start on October 14 and following

duties on trucks and drugs that go into effect on Wednesday. And

there has yet to be a breakthrough in talks between Trump and

congressional Democrats to forestall a government shutdown the

same day.

Anxiety about a shutdown pushed safe-haven gold to a fresh

record.

Data out of China and Japan hinted at the toll that trade

uncertainty is wrecking on the region's biggest economies.

China's manufacturing activity shrank for a sixth month in

September, official data showed, while a separate report showed

Japan's factory output fell more than expected in August.

The Australian dollar added slightly to gains on the day

after the nation's central bank held rates steady, as widely

expected, and said uncertainty in the global economy remains

elevated.

Asian share markets took it all in stride, with MSCI broadest

ex-Japan gauge adding to its more than 5% jump in September, the

best in a year.

If Washington does go dark, it would halt the release on Friday

of all-important non-farm payrolls data for September, a key

input for the timing of further easing by the Federal Reserve.

That puts the spotlight on other U.S. labour reports,

including today's JOLTS data. Analysts expect the figures to

show job openings held firm at around 7.18 million in August.

Equity contracts pointed to an opening in the red for

European markets. Pan-region Euro Stoxx 50 futures were

down 0.07%, German DAX futures slid 0.06%, and FTSE

futures edged 0.08% lower. U.S. futures, the S&P 500

e-minis, were flat.

Key developments that could influence markets on Tuesday:

- U.S. consumer confidence for September, JOLTS job openings

for August

- Flash CPIs for Germany, France

- British Q2 GDP

- Speeches by ECB President Christine Lagarde, Fed Vice

Chair Philip Jefferson, Boston Fed President Susan Collins

(Rocky Swift in Tokyo; Editing by Sam Holmes)