Markets Surge Amid Hopes for U.S. Government Reopening

Global markets experienced a rise on optimism over ending the U.S. government shutdown. Legislative advancements in the U.S. Congress offer potential resolution by the week's end, fueling gains in futures and global indices. Meanwhile, U.S. economic concerns linger, with potential GDP impacts and fluctuating currency and commodity prices.

Global markets exhibited upward momentum on Monday as optimism grew over a resolution to the historic U.S. government shutdown. The U.S. Senate advanced a measure expected to end the 40-day shutdown, boosting futures and global indices, as European and Asian markets also recorded gains.

Key legislative moves included the Senate progressing a House-passed bill to fund the government until January 30, paired with appropriations packages. Financial markets responded positively, with Nasdaq futures climbing 1.27%, and other indices marking similar improvements, driven by prospects of restored governmental operations.

Despite the market optimism, the U.S. economy faces ongoing challenges. Economic advisor Kevin Hassett warned of potential negative GDP figures for the fourth quarter if the shutdown continues. Meanwhile, the Treasury yields saw slight increases, and currency fluctuations persisted, reflecting a cautious investor outlook.

(With inputs from agencies.)