As global shares rise this Monday (10), driven by optimism that the end of strike history of the government of USA was close, while government bond yields rose and the dollar stabilized.
The and end a 40-day strike, which has sidelined federal employees, delayed food aid and caused disruptions to air traffic.
In a procedural vote, senators approved a bill already approved by the House, which will be amended to fund the government until January 30 and include a package of three full-year budget appropriations bills.
The advance contributed to the Nasdaq futures rose 1.5%while S&P 500 futures advanced 0.95%.
As , with the pan-European index STOXX 600 rising around 1.4%, while Diageo shares soared after the world’s biggest spirits maker appointed a new CEO.
MSCI’s broadest index of Asia-Pacific shares excluding Japan rose 1.3%, and the
“A possible end to the longest US economic shutdown is positive for markets,” said Prashant Newnaha, senior interest rate strategist for Asia-Pacific at TD Securities.
“Our expectation is that the next step will be a vote in the House on Wednesday, with the government scheduled to reopen this Friday.”
If the Senate approves the bill, the package will still need to be approved by the House of Representatives and sent to President Donald Trump for his signature, a process that could take several days.
The shutdown has taken a toll on the U.S. economy, with federal airport, police and military employees not receiving pay while the central bank operates blindly with limited government release of economic data.
White House economic adviser Kevin Hassett said in an interview that the government shutdown should be prolonged.
Data released on Friday (7) showed that in early November, as families worried about the economic consequences.
Mark Haefele, chief investment officer at UBS Global Wealth Management, said allocations to quality fixed income and gold, as part of a well-diversified portfolio, can help manage risk effectively.
“Overall, the combination of Fed monetary easing and robust corporate earnings remains favorable for equities, while quality bonds offer an attractive risk-return tradeoff,” Haefele said in a note.
“Investors with insufficient allocation should increase their exposure to transformative growth trends, including AI.”
Gold rose more than 2% on Monday, reaching its highest level in two weeks at around $4,079 an ounce, due to a combination of weak US economic data, expectations of interest rate cuts by the Federal Reserve and a weaker dollar.
Still, overall risk sentiment remained upbeat on Monday.
In China, the CSI300 index, made up of the main Chinese shares, closed up almost 0.4%, reversing initial losses, while Hong Kong’s Hang Seng index rose 1.6%.
Data released on Sunday showed that producer price deflation in China eased in October and as the government steps up efforts to curb overcapacity and fierce competition among companies.
US Treasury yields rose slightly, with the benchmark 10-year yield rising about 4 basis points to 4.13%, as a sense of risk appetite intensified in global markets.
In the foreign exchange market, the dollar recovered some of last week’s losses, as investors assessed the prospects for the American economy in the face of a more aggressive stance from the Fed.
While recent data has fueled concerns about a declining U.S. labor market, several Fed officials last week reiterated their preference for taking a cautious stance toward further interest rate cuts.
Markets are currently pricing in a 63% probability of a Fed interest rate cut in December.
Against the yen, the dollar rose 0.42% to 154.09 yen. The American currency showed little variation in relation to the euro and the pound sterling.
The , with some defending the need to ensure the sustainability of the pace of salary increases in companies, according to a summary of opinions presented at the October meeting, released on Monday.
In the commodities market, oil prices rose, with Brent crude futures up 53 cents to close at $64.16 per barrel, while US crude oil gained 53 cents to $60.28.
