Washington D.C, El Sky News — Global stock markets rallied on Monday following signs that Washington may be nearing an agreement to end the partial U.S. government shutdown that has rattled investors for more than a month. Optimism over a potential budget breakthrough lifted sentiment across Asia, Europe, and Wall Street.
According to Reuters, the MSCI World Index climbed by almost 1.3%, reaching its highest level in three weeks. The S&P 500 and Dow Jones Industrial Average both opened higher by more than 0.8%, fueled by expectations that a temporary funding deal could soon be finalized.
In Asia, the Nikkei 225 gained 1.1%, Hong Kong’s Hang Seng rose 0.9%, and South Korea’s Kospi advanced 0.7%. The U.S. dollar strengthened against the yen, while Treasury yields fell slightly as investors priced in lower fiscal risk.
Analysts said investor confidence was buoyed by reports that the U.S. Senate had begun negotiating a bipartisan emergency funding resolution. “Markets see signs of political stabilization after weeks of fiscal paralysis,” said Ayako Sato, a global markets economist at Nomura, quoted by Reuters.
Oil prices also firmed modestly, with Brent crude trading near $82 per barrel, while gold edged lower as risk appetite improved. However, market watchers warned that volatility could return if negotiations in Congress stall or face new partisan roadblocks
