Global Markets Movement: The US Crisis is Being Resolved

Global Markets Revive

Wall Street stocks rose on Friday, recovering from their lowest levels amid hopes that the US government will reopen. The S&P 500 index closed the day up 0.13 percent. Although the Nasdaq 100 made up most of its daily losses, it is still experiencing its worst week since April.

Economic Data and Confidence Index

In the US, the employment report was not published on Friday due to the halt in operations of federal agencies. The preliminary confidence index for November, released by the University of Michigan, fell 3.3 points from the previous month, to a level of 50.3. This is recorded as data above the record low of 50 in June 2022.

The expectation in the Bloomberg survey was 53. These data indicate that the government shutdown has negatively affected confidence in the economy and that high prices have distorted individuals' economic perceptions.

Rise in Futures Trading

In the new trading day, US futures indices rose after news that some Democrat senators were warm to a deal to reopen the government, rekindling investor interest.

Gold and Other Safe Havens

Gold prices rose for the second consecutive trading day. The weak data released on Friday, which overshadowed hopes of government reopening, was among the factors contributing to this rise. The Dollar/Yen traded at 153.98, up 0.4 percent. US Treasury bonds also lost value, with the 10-year Treasury yield rising by 4 basis points.

Rise in Asian Stock Markets

Asian stock markets gained 0.5 percent, led by South Korea. The sharp drop in technology stocks last week rattled investors and prompted them to reassess their behavior.

Investors' New Orientation

According to Goldman Sachs, US investors have started to focus on Japanese stocks centered around technology and artificial intelligence. Charu Chanana from Saxo Markets stated, "The hopes for a deal are boosting confidence and encouraging investors to return to stocks." However, volatility in the markets is expected to remain high until the official agreement is confirmed.

Activity in Commodity Markets

Most commodities gained value; Brent crude oil rose above 64 dollars per barrel, silver increased nearly 2 percent, and copper prices rose by 0.8 percent in London.