Global Markets Close Wednesday Higher as U.S Ends Historic Shutdown
Addressing the shutdown's resolution, Trump accused Democrats of attempting to "extort American taxpayers" during the impasse and encouraged citizens not to "forget this" when casting ballots in next year's midterm elections.
Wall Street performance and US asset classes
US equities displayed mixed momentum Wednesday as trading wrapped following the announcement. The S&P 500 registered modest gains of 0.06%, while the Dow Jones Industrial Average surged 0.68% to close at record territory. Meanwhile, the Nasdaq composite retreated 0.26% from its prior close. Futures trading Thursday revealed renewed optimism, with index contracts opening in positive territory following the government's operational restart.
Bond yields stabilized after dramatic moves earlier. The benchmark 10-year US Treasury note had fallen to 4.06% Wednesday but steadied near 4.09% as markets digested the fiscal agreement. Currency markets favored the dollar, which climbed 0.1% to 99.5 after snapping a four-session downturn. Meanwhile, precious metals extended their winning streak into a fifth consecutive session, with gold climbing 0.3% to $4,208 per ounce. Energy markets moved marginally lower as Brent crude declined 0.1% to $62.50 per barrel.
European bourses capitalize on budget resolution
Continental European exchanges capitalized on the Washington breakthrough, posting gains Wednesday as traders positioned for government reopening. Thursday saw continued momentum build on the initial rally.
Regional performance reflected broad-based strength: the UK's FTSE 100 advanced 0.12%, Italy's FTSE MIB 30 climbed 0.80%, France's CAC 40 jumped 1.04%, and Germany's DAX 40 added 1.22%. Forward-looking index contracts signaled additional European gains Thursday.
Asia-Pacific markets mostly extend gains, Hong Kong lags
Japanese, Korean, and mainland Chinese bourses benefited from the geopolitical fiscal resolution in Washington, riding the wave of heightened global risk appetite.
The Nikkei 225 advanced 0.3%, while South Korea's Kospi strengthened 0.6%. China's Shanghai Composite posted 0.5% gains. A notable outlier emerged as the Hong Kong Hang Seng index declined 0.5%, breaking from regional momentum.
Separate developments in Tokyo underscored monetary policy deliberations. Bank of Japan Governor Kazuo Ueda reaffirmed that the institution remains committed to "targeting moderate inflation alongside wage growth and economic recovery." He noted the inflation objective "aligns with Prime Minister Sanae Takaichi's strategy to stimulate long-term growth."
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