US Government Shutdown Ends; Market Optimism Increases

US Senate Enables Government Reopening

Long-standing government shutdown has ended with the agreement accepted by the US Senate on Monday to restore federal funding. During this shutdown period, millions of people faced disruptions in food assistance, hundreds of thousands of federal workers went unpaid, and there were interruptions in air traffic. Additionally, the release of important economic data by the government was delayed during this time.

Market Rise Expectations

The Republican-majority House of Representatives is expected to vote on a compromise aimed at providing funding to government agencies on Wednesday. This development is being positively received by investors. According to ADP data, American companies have made over 11,000 layoffs per week until the end of October, a situation that is being closely monitored by FED policymakers. These data and the reopening of the government have increased investors' expectations that the Central Bank may lower interest rates by 68% next month.

Positive Reactions in Asian Markets

Expectations are reflecting positively in the markets. The MSCI index of Asia-Pacific stocks, excluding Japan, increased by 0.4%. Taiwan's stock market saw a gain of 1%, while Japan's Topix index rose by 0.6% to reach a new record level.

Effects on Oil and Energy Markets

The International Energy Agency (IEA) has stated that global demand for oil and natural gas may increase until 2050. However, while the OPEC annual oil market report is expected to be published, Brent crude oil lost 0.3% and decreased to $64.93. Uncertainty continues regarding Russian crude oil flows due to sanctions; there has been a slowdown in flows in recent weeks, and significant decreases have been observed in volumes to China and India.

Price Fluctuations in Precious Metals

Precious metals experienced a decline in prices following the recovery of the dollar and profit-taking. Spot gold fell by 0.5% to $4,107 per ounce, while silver decreased by 0.4% to $51.05. On the other hand, the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, announced that it has increased its gold holdings by 0.41% to 1,046.36 tons.