A look at the day ahead in European and global markets |
|
|
By Rae Wee, Markets Correspondent |
|
|
Global markets are set to begin the week with an oomph as investors cheer the prospect of an imminent end to a historic U.S. government shutdown that has upended everything from air travel to key economic data releases. In a procedural vote, the U.S. Senate on Sunday advanced a House-passed bill that will be amended to fund the government until January 30 and include a package of three full-year appropriations bills. |
|
| Growing Toll On US Economy |
An airport staff member helps a traveler at Ronald Reagan Washington National Airport, more than a month into the ongoing U.S. government shutdown, in Arlington, Virginia, U.S., November 9, 2025. REUTERS/Annabelle Gordon |
If the Senate eventually passes the amended bill, the package still must be approved by the House of Representatives and sent to President Donald Trump for his signature, a process that could take several days. Nonetheless, the positive stride was enough to send Nasdaq futures up 1.2% and S&P 500 futures up 0.7% in Asia, with European futures also clocking strong gains. Asia stocks were upbeat, while U.S. Treasury yields and the dollar rose. The shutdown has taken a growing toll on the U.S. economy, with federal workers from airports to law enforcement and the military going unpaid while the Federal Reserve flies virtually blind with limited government reporting of economic data. White House economic adviser Kevin Hassett said in an interview that the U.S. economy could contract in the fourth quarter if the shutdown drags on. The latest developments offered a much-needed lift to stock markets after a turbulent few sessions last week on nerves over elevated valuations of artificial intelligence and technology stocks - sectors that have powered the market this year. |
|
|
Deflation Easing In China? |
Still, many investors viewed the pullback as a breather rather than a sign of deeper trouble. On the policy front in Asia, minutes of the Bank of Japan's October meeting showed on Monday that policymakers saw a growing case to raise interest rates in the near term. The discussions heighten the chance the BOJ could hike rates next month or in January, with the timing dependent on whether earnings and comments from executives give policymakers enough conviction that firms will keep increasing pay next year. In China, the CSI300 blue-chip index (.CSI300), opens new tab was down 0.24%, while Hong Kong's Hang Seng Index (.HSI), opens new tab rose 0.6%. Producer price deflation in the world's no. 2 economy eased in October and consumer prices returned to positive territory, data showed on Sunday, as Beijing steps up efforts to curb over-capacity and cut-throat competition among firms. |
Graphics are produced by Reuters. |
|
|
Key developments that could influence markets on Monday: |
- France: Reopening of 3-month, 6-month, 9-month and 1-year government debt auctions
- Germany: Reopening of 3-month and 9-month government debt auctions
|
Graphics are produced by Reuters. |
|
|
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. |
|
|
Morning Bid is sent every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. Want to stop receiving this email? Unsubscribe here. To manage which newsletters you're signed up for, click here. This email includes limited tracking for Reuters to understand whether you've engaged with its contents. For more information on how we process your personal information and your rights, please see our Privacy Statement. Terms & Conditions |
|
|
|
No comments:
Post a Comment