U.S. Shutdown Ends, Global Markets Surge with Optimism

Global markets opened the week with renewed energy as hopes of ending the historic U.S. government shutdown lifted investor sentiment worldwide. The shutdown, which disrupted air travel, economic reports, and public services, may finally be close to resolution after the Senate advanced a House-passed bill funding the government until January 30.

The Senate move includes a package of three full-year appropriations bills. While the measure still requires House approval and the President’s signature, optimism over its eventual passage sent Nasdaq futures up 1.2% and S&P 500 futures up 0.7% in Asia. European futures also gained, reflecting a wave of relief across global markets.

The shutdown had left federal employees unpaid, from airport staff to military personnel, while hampering the Federal Reserve’s access to vital economic data. Consumer sentiment fell to its lowest in over three years, raising concerns over potential economic contraction if the impasse continued.

Technology stocks, which have driven much of this year’s market gains, saw volatility last week, but analysts viewed the recent pullback as a temporary pause rather than a market crisis.

Meanwhile, Asia’s monetary policies are under the spotlight. The Bank of Japan’s October minutes suggest a possible interest rate hike in the near term, depending on wage growth trends and corporate earnings. In China, easing producer price deflation and a return to positive consumer price growth signal efforts to stabilize the economy amid capacity cuts and reduced competition among firms.

Markets will also watch European debt auctions on Monday, with France reopening multiple short-term government debt auctions and Germany following with 3-month and 9-month offerings.

The combination of the U.S. funding boost and stabilizing economic signals in Asia has given investors reason to start the week with confidence, while cautious optimism prevails over technology valuations and policy shifts.