Global stock markets climbed on Monday amid growing optimism that the prolonged U.S. government shutdown could soon end, boosting investor sentiment and easing fears over the economic fallout from the political deadlock in Washington.
In early Asian trade, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5%, while Japan’s Nikkei gained 0.6%, supported by advances in technology and financial stocks.
Nasdaq futures jumped 0.8%, and S&P 500 futures added 0.5%, signaling a positive start for Wall Street.
The rally followed weekend developments in the U.S. Senate, where lawmakers appeared close to a bipartisan agreement to reopen the federal government.
Senate Majority Leader John Thune said discussions had “taken a positive turn,” paving the way for a potential vote on Sunday.
“The Senate appears close to a deal, but even if it passes, it still needs approval from the House of Representatives, where Democratic leaders have already signaled opposition,” said Charu Chanana, chief investment strategist at Saxo.
“Markets may see short-term relief, but headline-driven volatility is likely to continue until there’s a clear resolution.”
The historic shutdown has strained the U.S. economy, leaving hundreds of thousands of federal workers without pay and delaying critical data releases that guide monetary policy.
White House economic adviser Kevin Hassett warned that fourth-quarter GDP growth could turn negative if the impasse persists. Recent data showed consumer sentiment plunging to a three-and-a-half-year low in early November.
European markets mirrored the upbeat mood, with EUROSTOXX 50 and Germany’s DAX futures both climbing 1.3%, while South Korea’s Kospi surged 2%. U.S. Treasury yields inched higher, with the 10-year yield up 3.5 basis points to 4.13% and the two-year yield rising 3 bps to 3.59%.
In currency markets, the U.S. dollar steadied after recent losses, gaining 0.28% to 153.87 yen, while the euro slipped 0.13% to $1.1551. The British pound eased 0.17% to $1.3142.
Commodities also benefited from the improved risk appetite. Brent crude rose 0.4% to $63.89 per barrel, while U.S. crude gained 0.45% to $60.01. Spot gold climbed 0.6% to $4,023.40 an ounce as investors balanced risk-taking with safe-haven demand.
Analysts said that while markets welcomed signs of progress in Washington, sustained gains would depend on a definitive end to the shutdown and clearer signals on U.S. fiscal stability and Federal Reserve policy.
Source: Reuters
Written By Rodney Mbua
