Global Markets Surge Amid U.S. Shutdown Resolution

World stock markets rallied with European indices reaching record highs as the U.S. Congress neared resolving a federal shutdown. This development eased economic uncertainties, while U.S. jobs data anticipates potential Federal Reserve rate cuts. The yen's decline spotlighted Japanese economic concerns. Political tensions in the UK and crude oil fluctuations added complexity.

Global stock markets experienced a significant rally on Wednesday as European markets reached record highs, driven by optimism over the resolution of the U.S. federal shutdown. This breakthrough is expected to alleviate economic uncertainties that have overshadowed the U.S. economy.

The STOXX-600 and FTSE 100 indices in Europe hit new records, while U.S. stock futures and Japan's Nikkei indicated favourable gains. However, looming U.S. jobs data still fuels speculation on a possible Federal Reserve rate cut in December, with market participants weighing economic soft spots against potential growth slowdowns.

Japan faced economic pressure as the yen fell to nine-month lows, triggering concerns from officials. Meanwhile, political tensions simmered in the UK, potentially affecting markets. In commodity news, oil prices dipped slightly after a previous gain, and gold remained steady.

(With inputs from agencies.)