Global markets breathe a sigh of relief as shutdown end nears

Global markets surged on Monday after the US Senate took the first formal step toward ending the longest government shutdown in American history, lifting risk sentiment across equities, commodities and cryptocurrencies.

The move came late Sunday in Washington, where eight Democratic lawmakers crossed party lines to support a compromise bill that would reopen the federal government and keep it funded through the end of January.

The development sharply eased investor anxiety that had weighed on markets in recent weeks.

While the Senate’s move has revived market confidence, the deal still must be debated and approved before being sent to the Republican-controlled House of Representatives.

The timing of House action remains uncertain.

A government reopening would also restore the release of critical economic data, including labor-market reports that have been paused.

The interruption has obscured visibility into an economy showing early signs of cooling, heightening investor focus on the coming week’s political developments.

Europe stocks and US futures jump

Europe led the global rebound. The Stoxx Europe 600 rose 1.4% in early trading, while Germany’s Dax climbed 1.8%, reflecting broad relief across sectors most exposed to economic disruption.

US equity futures strengthened as well. Futures tied to the S&P 500 gained 1%, while Nasdaq 100 futures advanced 1.5%, signalling a strong open for Wall Street.

Government bonds pulled back as investors shifted back into equities and other risk assets, pushing yields on 10-year US Treasuries up 0.04 percentage points to 4.13%.

US technology stocks rallied in pre-market trading as investors welcomed the prospect of the government reopening and relief from economic uncertainty.

Nvidia was up 3.3%, Tesla gained 2.4%, and Alphabet rose 2.2% before the opening bell.

Tech shares had been among the hardest hit during last week’s market pullback, driven by concerns that Silicon Valley’s largest firms had become overvalued relative to economic conditions.

Asia joins the rebound

Asian markets also posted solid gains following the Senate’s progress.

South Korea’s Kospi rose 3%, Hong Kong’s Hang Seng added 1.6%, and Japan’s Nikkei 225 closed 1.3% higher.

The broader Topix index gained 0.6%.

The rally followed a choppy week in global equities, particularly in the technology sector, where valuations had come under renewed scrutiny as US economic data disappointed.

Shutdown deal details ease travel sector fears

The shutdown compromise includes provisions to reverse layoffs initiated by the White House and guarantee back pay for furloughed workers.

It also incorporates a Democratic concession on healthcare tax credits — a point of contention throughout the funding standoff.

One area particularly strained by the shutdown has been the airline sector, where missed paychecks led to a growing shortage of air traffic controllers.

That had prompted flight reductions and sparked fears of severe disruption during the Thanksgiving travel period.

Those fears appeared to ease Monday as shares of major US airlines rose in pre-market trading on expectations that staffing concerns would abate once government funding resumes.

Gold and Bitcoin rise

Commodity markets reflected the improving tone.

Gold prices jumped 2% to $4,080 per troy ounce, extending recent strength as investors positioned for clearer economic data once the government reopens.

Bitcoin also rallied, climbing 3% to around $106,000.