With US data releases cancelled until the government reaches a budget deal, the attention will turn to economic announcements in Europe and the UK.
A report on the UK services industry is expected to show the purchasing managers' index (PMI) came in at 60.5 in September, in line with the previous month's reading and above the 50 reading that signals expansion.
In Europe, the PMI Composite, which includes manufacturing and services, was at 52.1 in September, unchanged from August, according to consensus ahead of the report's release.
The data comes a day after European Central Bank President Mario Draghi said Europe was recovering albeit at a slow pace.
His remarks followed an announcement by the central bank to keep its benchmark interest rate unchanged at 0.5% until it sees further signs of recovery in the Eurozone.
In the US, there will be no data releases as long as the government partial shutdown continues.
The Bureau of Labor Statistics (BLS) warned on its website on Tuesday that "the BLS will not collect data, issue reports, or respond to public inquiries. Updates to the site will start again when the Federal government resumes operations. Revised schedules will be issued as they become available".
The government began a partial shutdown on Tuesday after failing to reach an agreement on the budget by the Monday midnight deadline.
Some economists predict it could take up to two weeks of political infighting between the Republicans and Democrats over next year's budget and the debt ceiling.
"In fact, it wouldn't surprise me if neither party was ever really interested in striking a deal over next year's budget, instead seeing it as a dress rehearsal for the debt ceiling negotiations and an opportunity to rally the public against the opposition," said Craig Erlam, Market Analyst at Alpari.
"We never saw any effort to negotiate from either party and neither has made much of an attempt since government shut down at midnight on Monday."
The closure of the government is expected to reduce economic growth was a much as 0.3% but the debt ceiling is seen as a bigger threat.
The government reached its $16.7trn debt ceiling in May and since then has been using emergency measures to conserve cash.
Treasury will have about $30bn in cash on hand by October 17th, barely enough to pay its bills.
Thursday October 3rd
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QUARTERLY PAYMENT DATE
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Bloomberg Consumer Confidence (US) (14:45)
Continuing Claims (US) (13:30)
Factory Orders (US) (15:00)
Goods Orders (US) (15:00)
Initial Jobless Claims (US) (13:30)
ISM Non-Manufacturing (US) (15:00)
ISM Services (US) (15:00)
PMI Composite (EU) (09:00)
PMI Composite (GER) (08:55)
PMI Services (EU) (09:00)
PMI Services (GER) (08:55)
Retail Sales (EU) (10:00)
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UK ECONOMIC ANNOUNCEMENTS
Official Reserves (09:30)
PMI Composite (09:30)
PMI Services (09:30)
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