lobal stock markets rose on Monday as investors grew optimistic that the prolonged U.S. government shutdown could soon end, easing worries about its economic impact and restoring confidence across global markets.
In early Asian trading, MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.5%, while Japan’s Nikkei climbed 0.6%, led by advances in technology and financial stocks. The positive trend extended to U.S. markets, with Nasdaq futures rising 0.8% and S&P 500 futures up 0.5%, signaling a strong start for Wall Street.
The rally followed reports that U.S. lawmakers were close to reaching a bipartisan agreement to reopen the federal government. Senate Majority Leader John Thune said negotiations had “taken a positive turn,” raising expectations of a possible 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. She added that markets might experience short-term relief, but volatility could persist until a final resolution is reached.
The shutdown, one of the longest in U.S. history, has disrupted public services and left hundreds of thousands of federal workers without pay. It has also delayed key economic reports used by policymakers to assess the economy. White House economic adviser Kevin Hassett warned that the continued impasse could push fourth-quarter GDP growth into negative territory. Recent data also showed consumer sentiment falling to its lowest level in over three years.
European markets echoed the optimism, with EUROSTOXX 50 and Germany’s DAX futures both rising 1.3%. In Asia, South Korea’s Kospi jumped 2%, while U.S. Treasury yields edged higher — the 10-year yield up 3.5 basis points to 4.13% and the two-year yield climbing to 3.59%.
In currency markets, the U.S. dollar steadied after recent declines, gaining 0.28% to 153.87 yen. The euro slipped slightly to $1.1551, and the British pound eased 0.17% to $1.3142.
Commodities also gained as investor risk appetite improved. Brent crude rose 0.4% to $63.89 per barrel, and U.S. crude advanced 0.45% to $60.01. Spot gold edged up 0.6% to $4,023.40 an ounce as investors balanced optimism with safe-haven demand.
Analysts said sustained market gains would depend on a definitive end to the shutdown and clear fiscal guidance from Washington and the Federal Reserve.
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