Global stock markets climbed on Monday amid growing optimism that the United States was nearing a deal to end its record-breaking 40-day government shutdown. Investors responded positively after the U.S. Senate advanced a measure to reopen the federal government and fund operations until January 30, coupled with a package of three full-year appropriations bills. The move lifted market sentiment, easing fears over economic fallout from the prolonged political standoff that has paralyzed federal agencies, delayed food aid, and disrupted air travel across the country.
Jocomms Correspondent reports that the breakthrough pushed Nasdaq futures up 1.27%, S&P 500 futures by 0.74%, and European indexes such as EUROSTOXX 50 and DAX by about 1.5% each, while the FTSE gained 0.85%. Asia-Pacific shares also rallied, with MSCI’s broadest regional index climbing 1.36% and Japan’s Nikkei advancing 1.33%. Analysts say the market rebound reflects investor confidence that a resolution is imminent. Prashant Newnaha, a senior Asia-Pacific strategist at TD Securities, noted that markets expect a final House vote by midweek and a possible government reopening by Friday.
However, economists warn that even a swift resolution cannot immediately reverse the damage to the U.S. economy. The shutdown has weakened consumer sentiment, stalled data reporting, and threatened fourth-quarter growth, with White House officials admitting GDP could turn negative if disruptions persist. Still, risk appetite remains strong across global markets, buoyed by improving inflation data from China and renewed optimism for global recovery. As Washington inches closer to a deal, one question lingers—will the relief rally hold once the government finally reopens? Visit www.jocomms.com for more news.
