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Stocks rally as shutdown progress boosts sentiment

Global equity markets advanced at the start of the week, led by a sharp recovery on Wall Street after the US Senate approved a funding bill, raising hopes of an imminent end to the country’s record government shutdown. US, European, and Asian tech stocks outperformed after last week’s declines, while gold neared three-week highs. The US Dollar Index was stable early in the week, while US Treasury yields edged slightly higher with the 2-year at 3.6%, the 10-year at 4.1%.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

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Major US equity indices rebounded on Monday as expectations rose for an end to the government shutdown, following signs of bipartisan progress in Congress. Legislation passed by the Senate funds the government through January, aiming to end the country’s longest-ever government shutdown, and will now proceed to the House of Representatives. The Nasdaq 100 outperformed, climbing 2.2% to 25,611.74 points, while the S&P 500 gained 1.5% to 6832.43 points and the Dow Jones Industrial rose 0.8% to 47,368.63 points, recovering further from lows reached last week. Among leading technology shares, Nvidia surged 5.8%, while other "Magnificent 7" stocks also advanced, with Apple lagging slightly.

Japanese and South Korean stocks gain as tech rebounds

Shares in Japan and South Korea rose on Tuesday, supported by renewed strength in technology firms and a positive lead from US markets, while mainland China equities lagged due to ongoing concerns over weak economic growth. The Nikkei 225 advanced 0.1% and South Korea’s Kospi climbed 0.8%, with major tech names such as SK Hynix and Samsung Electronics making considerable gains, and SoftBank rising ahead of its earnings release. In contrast, China’s CSI 300 dropped 0.9%, as recent stimulus promises failed to lift sentiment amid disappointing October economic indicators. Hong Kong’s Hang Seng slipped 0.2%, while Australia’s ASX 200 also fell 0.2%, weighed down by a sharp decline in Commonwealth Bank of Australia shares.

Gold prices reach near three-week high

Gold prices climbed in Asian trading on Tuesday, with spot gold rising 0.6% to USD 4140 per ounce as investors maintained demand for the metal amid persistent uncertainty over US trade policy and economic outlook. Despite a stronger US dollar and progress on resolving the 41-day government shutdown, gold continued to attract safe haven inflows due to ongoing concerns over potential trade tariff changes and delayed economic data releases. Platinum and silver prices also advanced. Heightened trade and economic risks, as well as questions around the Federal Reserve's next move on interest rates, have been key drivers behind gold’s recent rebound.

European shares rebound as shutdown hopes rise

Leading European stock markets advanced on Monday, buoyed by optimism over US Congress moving towards resolving the government shutdown, which lifted investor risk appetite after nearly two weeks of weakness. The Euro Stoxx 50 gained 1.7% to 5661.55 points, Germany’s DAX rose 1.7% to 23,959.99 points, and France’s CAC 40 increased 1.3% to 8055.51 points. The Swiss Market Index advanced 1.4% to 12,465.39 points. Banking and travel sector shares were among the main beneficiaries, with airline stocks outperforming and Commerzbank rising after a favourable broker recommendation, while technology shares were also supported by easing chip export restrictions from China. Roche shares jumped almost 4% following positive clinical trial results.

German investor sentiment dips in November

Investor confidence in Germany eased in November, with the Sentix economic index declining to minus 20.4 points, down from minus 17.9 in October, as reported on Monday. The current situation index also fell to minus 38.3 points and the expectations index dropped to minus 0.5 points, indicating ongoing pessimism amid limited political stimulus and cautious monetary policy. For the euro area, the index fell to minus 7.4 points, reflecting subdued sentiment and a lack of growth drivers following fleeting optimism in the spring and summer. Overall, investors continue to await positive news for Germany’s economy and the euro area remains mired in slow contraction.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Munich Re and SoftBank Group.

Economic data in focus: UK unemployment rate (08:00), European Central Bank President Christine Lagarde speaks (09:20), German ZEW Indicator of Economic Sentiment (11:00).

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