Huatai Securities: U.S. Government Shutdown Impact Milder Than Last Time

Odaily News Huatai Securities research report suggests that at noon Beijing time on January 31, 2026, following last October, the U.S. government has shut down again. However, unlike last October, the two parties have already reached most compromises. The brief shutdown occurred solely because the House of Representatives was in recess and could not vote in time. The government is expected to reopen as early as February 2 after the House passes the funding resolution. Since this shutdown occurred over a weekend, is short in duration, and only affects some agencies, it is anticipated to have no impact on the economy, markets, or data releases. However, repeated government shutdowns highlight domestic division and political polarization in the U.S., which may accelerate the process of de-dollarization in the medium to long term. (Jin10)