Global markets are feeling more positive as signs emerge that the U.S. government shutdown may soon end. This shutdown has caused significant disruptions, including unpaid federal workers and delays in food aid and air travel.
Recently, the U.S. Senate advanced a bill to reopen the government, which has been shut down for over 40 days. This plan aims to fund the government until January 30 and includes important appropriations. As this news broke, Nasdaq futures climbed by 1.27%, while S&P 500 futures rose by 0.74%.
Experts like Prashant Newnaha from TD Securities noted, “A potential end to the longest U.S. shutdown is definitely good for markets.” The positive sentiment reflects hope that a House vote scheduled for Wednesday will further solidify the government’s reopening.
The absence of federal operations has been impacting the economy, causing worries among citizens. In an interview, White House economic adviser Kevin Hassett mentioned that the GDP could see negative growth if the shutdown continues. Consumer sentiment has dropped to a near three-and-a-half-year low, indicating significant public concern about the economic impact of the shutdown.
Charu Chanana, chief investment strategist at Saxo, emphasized that restoring market confidence won’t erase the economic effects already felt during this prolonged shutdown.
In international markets, Asia-Pacific shares are on the upswing as well. The CSI300 in China, after initial losses, ended 0.3% higher. Meanwhile, data released showed that China’s producer price deflation eased in October, suggesting a modest recovery.
In the U.S., Treasury yields have been on the rise. The 10-year yield increased to 4.1355%, while the two-year yield followed suit. The dollar has also shown some recovery, though recent trends indicate anxiety around the labor market.
Despite fluctuations, the overall mood in the markets remains optimistic. Key trade partners like Japan are also considering interest rate hikes to maintain economic momentum, indicating a possible shift in global economic strategies.
Oil prices are climbing, with Brent crude up to $64.15 per barrel. Meanwhile, gold prices have jumped, signaling investor interest in commodities amid market uncertainty.
The ongoing developments in the U.S. and global markets highlight the interconnectedness of economies, where local political actions can have far-reaching effects.
Source link
TOPIC:MARKETS-COMMODITIES-ENERGY,MKTREP,REP,COM,CRU,DBT,ECO,ENR,FRX,GEN,GOL,GVD,HREP,MCE,METL,NEWS1,NRG,POL,PREMTL,STX,WASH,WEU,EASIA,KR,AMERS,US,EUROP,SG,HK,AU,ASEAN,TW,NAMER,SEASIA,EMEA,ASXPAC,EMRG,AUNZ,CN,ASIA,JP,DEST:AUF,DEST:CSA,DEST:SNI,DEST:SI,DEST:LBY,DEST:REULB,DEST:ABX,DEST:G,DEST:RAST,DEST:FNE,DEST:SOF,DEST:J,DEST:M,DEST:PGE,DEST:GNN,DEST:Z,DEST:PTD,DEST:RNP,DEST:E,DEST:C,DEST:ABN,DEST:AFA,DEST:BNX,DEST:GRO,DEST:PSC,DEST:FMW,DEST:U,DEST:O,DEST:DNP,DEST:MTL,DEST:FUN,DEST:UCDPTEST,DEST:RWSA,DEST:GNS,DEST:RWS,DEST:D,DEST:RBN,DEST:OIL,FIN,MKTS/GLOB,TOPNWS,DEST:OUSBSM,DEST:OCABSM,DEST:OUKBSM,DEST:OZABSM,DEST:ORTAO,DEST:NOINBSM,DEST:SEABS,CEN,LAW,CLJ,TOPCMB,GOVACT,GVGVF,PBFACT,SEN
