Global Market Sentiment Improves Amid U.S. Government Progress
Market sentiment around the world saw an uptick on Monday following positive developments in the United States. U.S. Senate lawmakers moved a procedural vote forward late Sunday to advance legislation aimed at ending the ongoing government shutdown, according to CNBC. This progress came after weeks of stalled negotiations in Washington, which had restricted access to vital federal economic data.
The absence of timely economic data has made it more challenging for traders to assess interest rate expectations. The news of potential government reopening immediately reflected positively in U.S. stock futures. Last week had been difficult for major indices, with concerns over high valuations in artificial intelligence stocks weighing heavily.
During early Monday trading, S&P 500 futures surged by 0.76%. Dow Jones futures added 112 points, or 0.24%, while Nasdaq-100 futures rallied by 1.29%. In the previous week, the Nasdaq Composite experienced its worst weekly performance since April, crashing 3%. The S&P 500 declined by 1.6%, and the Dow Jones Industrial Average fell by 1.2%.
Asian markets also posted broad gains after easing selloff pressures. Across the Asia-Pacific region, equities moved higher on Monday. South Korea’s Kospi rose 3.02% to 4,073.24, and the Kosdaq gained 1.32% to 888.35. Major South Korean companies advanced, with Samsung Electronics up 2.76% and SK Hynix increasing by 4.48%. SK Inc., a major holding company for one of the country’s largest conglomerates, surged 9.29%, while GS Holdings, active across energy, retail, and construction sectors, climbed 11.79%.
In Japan, the Nikkei 225 gained 1.26% to 50,911.76, and the Topix index increased 0.56% to 3,317.42. Notably, 10-year Japanese government bond yields hit 1.7%, their highest level since October. Hong Kong’s Hang Seng index added 1.54%, and China’s CSI 300 rose 0.17%. Australia’s S&P/ASX 200 moved up 0.75% to 8,835.9. Meanwhile, India’s Nifty 50 increased 0.54%, and the Sensex gained 0.52%.
In Europe, the Stoxx 600 index rose 1% during the morning session. The FTSE in the United Kingdom increased by 0.5%, Germany’s DAX gained 1.4%, France’s CAC 40 advanced 1%, and Italy’s FTSE MIB also saw a 1% rise. Nearly every sector moved positively as investors reacted to the recent developments in U.S. policy. This trend reflects an improving confidence that government operations may soon stabilize, allowing for more confident economic projections.
The U.S. dollar appreciated by 0.35% against the yen, trading near 153.98, close to a nine-month high earlier in the month. The Australian dollar strengthened by 0.55% to $0.6532, gaining over 1% against the yen. Frances Cheung, Head of Foreign-Exchange and Rates Strategy at Oversea-Chinese Banking Corp., commented, “Monday’s market moves, including dollar losses against risk-proxy currencies, reflected hopes that the U.S. government would reopen.”
Precious metals also experienced increased buying interest. Spot gold rose 1.4% to $4,053.40 per ounce, while U.S. gold futures gained 1.3% to $4,062.40. Silver increased 1.8% to $49.18, platinum rose 1.3% to $1,565.36, and palladium moved 0.7% higher to $1,389.94.
Additionally, the MSCI Emerging Markets Index increased by 1.3%, and a Bloomberg gauge tracking large and mid-cap stocks also showed gains. A developing-nation currency index was up by 0.1%, signaling broader positive sentiment across emerging economies.
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