What's Happening?
Global shares have increased, driven by optimism that the U.S. government shutdown may soon end. The U.S. Senate advanced a measure to reopen the government, which has been shut down for 40 days, affecting
federal workers and services. Wall Street is expected to open higher, with Nasdaq futures up 1.5% and S&P 500 futures rising 0.9%. European shares also rose, with the STOXX 600 up 1.4%. The shutdown has impacted the U.S. economy, with concerns about negative GDP growth if it continues.
Why It's Important?
The potential end of the U.S. government shutdown is a positive development for global markets, restoring confidence and stabilizing economic activities. The shutdown has had significant economic impacts, including delayed data releases and unpaid federal workers. The resolution could alleviate these issues, but the delay in economic data may continue to affect policy-making and market expectations. Investors are adjusting portfolios to manage risks, with increased allocations to fixed-income and gold.
What's Next?
The Senate's measure must be approved by the House of Representatives and signed by President Trump to officially end the shutdown. This process could take several days, during which market responses and economic activities will be closely monitored. Investors will watch for signs of recovery and stability in government operations and economic data releases, with potential impacts on interest rates and market forecasts.
