Global markets rise as US shutdown deal boosts investor confidence

Global markets rise as US shutdown deal boosts investor confidence

Beijing: Global stock markets climbed on Tuesday after the United States Senate approved a funding bill expected to end the country’s longest government shutdown, lifting investor sentiment across major financial centers.

In early trading, U.S. markets showed strong gains, with the Nasdaq Composite up by about 2.3 percent. The positive momentum spread to Asia, where most stock exchanges recorded modest increases as traders welcomed signs of political stability in Washington.

Gold prices also rose sharply, reaching above 4,100 dollars an ounce, as investors balanced renewed optimism in equities with continued interest in safe assets. Meanwhile, the Japanese yen weakened to around 154.49 per dollar, its lowest level in nine months, as funds moved toward riskier investments.

Market analysts said the end of the shutdown brought relief to traders who had worried about delays in economic data releases and potential effects on growth. However, they also warned that the Federal Reserve’s next steps on interest rates would remain a key factor for market direction.

In Asia, Chinese and Hong Kong stocks saw mixed performance. While some technology shares advanced, overall gains were limited by concerns over domestic economic growth and property market weakness. Analysts said that although China’s government continues to invest in technology and innovation, slower consumer demand and demographic challenges still weigh on its broader recovery.

Elsewhere, China’s trade and foreign relations continued to draw attention. Beijing recently expressed readiness to resume cooperation with Canada after years of strained ties. At the same time, reports indicated that China may tighten export controls on certain rare earth materials vital to defense and technology industries.

Economists noted that while global investors welcomed the end of the U.S. political standoff, several uncertainties remain. Geopolitical tensions, shifting trade rules, and uneven global growth could still influence financial markets in the months ahead.

Despite those challenges, analysts expect that the resolution of the U.S. funding issue will help stabilize global trade and financial confidence, at least in the short term, giving investors more clarity about the path of economic recovery heading into 2026.


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