Global markets rise as US government reopens after record shutdown

ISTANBUL

Global markets moved higher Thursday, buoyed by stronger risk appetite following the reopening of the US federal government after the longest shutdown in the nation’s history.

The 43-day shutdown ended after US President Donald Trump signed a temporary budget bill passed by Congress to resume government operations. Trump accused Democrats of trying to “extort American taxpayers” during the shutdown and urged voters not to “forget this” in next year’s midterm elections.

US markets and yields

On Wall Street, the S&P 500 index rose 0.06% and the Dow Jones Industrial Average gained 0.68% on Wednesday, closing at a record high, while the Nasdaq composite slipped 0.26%. US index futures opened higher Thursday following the reopening of the government.

The yield on 10-year US Treasury notes, which fell to 4.06% on Wednesday, steadied at around 4.09%. The dollar index climbed 0.1% to 99.5, ending a four-day losing streak.

Gold extended its rally for a fifth straight session, rising 0.3% to $4,208 an ounce, while Brent crude declined slightly by 0.1% to $62.50 a barrel.

European stocks open higher

European markets closed in positive territory Wednesday amid expectations that the US shutdown would soon end, and opened higher again after the government reopened.

In the previous session, the UK’s FTSE 100 gained 0.12%, Italy’s FTSE MIB 30 rose 0.80%, France’s CAC 40 climbed 1.04%, and Germany’s DAX 40 added 1.22%. European index futures pointed to further gains on Thursday.

Asia mostly higher, except Hong Kong

Asian markets were also largely positive, supported by the boost to global risk sentiment from Washington’s budget breakthrough.

Japan’s Nikkei 225 rose 0.3%, South Korea’s Kospi advanced 0.6%, and China’s Shanghai Composite gained 0.5%. However, Hong Kong’s Hang Seng index slipped 0.5%.

In Japan, Bank of Japan Governor Kazuo Ueda reiterated that the central bank is targeting moderate inflation alongside wage growth and economic recovery. He said the inflation goal aligns with Prime Minister Sanae Takaichi’s strategy to stimulate long-term growth.