World markets posted mixed reactions in Tuesday trading as the United States commenced a rare process that will close the federal government.
The White house has ordered agencies to shutter their doors, initiating a shutdown after lawmakers were unable to agree on a short-term extension of government funding.
The stakes are high. A government shutdown could cost the still-struggling U.S. economy roughly $1 billion a week in pay lost by furloughed federal workers.
Economists say the impact will come not just from those lost wages, but also from related businesses cutting back or halting their operations.
"No doubt, everyone's gaze is firmly set on Washington, D.C.," said HSBC economist Frederic Neumann.
Despite the threat, initial market reaction around the world was muted, while the U.S. dollar stumbled 0.4 percent against a basket of global currencies.