Asian Traders Breathe Sigh of Relief as US Shutdown Ends

Global markets held their ground, buoyed by a three-day winning streak that propelled them to within touching distance of a record high, following President Donald Trump's signing of legislation to end the longest government shutdown in US history. The move was seen as a significant development, as it lifted investor sentiment and sparked optimism about the economy. According to data, contracts for the SP 500 Index rose 0.2% after the underlying gauge rose for four successive days, driven by the resolution of the shutdown. Futures indicated that European shares would set another record high, while Asian shares edged up 0.4%. The MSCI All Country World Index swung between small gains and losses as investors remained cautious ahead of the resumption of economic data, a key factor in shaping the Federal Reserve's interest-rate outlook. The data void has left investors on edge, with the MSCI All Country World Index hovering around 2,000, a level it has not breached since 2018. The index has gained 10% year-to-date, driven by a surge in global equities. The SP 500 Index has risen 15% in the same period, with the tech-heavy Nasdaq Composite Index leading the charge, up 20% year-to-date. The market impact of the shutdown resolution was evident in the performance of key sectors. The financial sector, which had been one of the hardest hit during the shutdown, saw a significant bounce, with the KBW Bank Index rising 2.5%. The healthcare sector, which had been a beneficiary of the shutdown, also saw a decline, with the NYSE Arca Biotech Index falling 1.5%. The company context was also significant, with several major players in the US economy seeing their shares rise on the news. Apple, which had been one of the biggest beneficiaries of the shutdown, saw its shares rise 1.5% on the day. Amazon, which had been a laggard during the shutdown, saw its shares rise 2.5%. Looking ahead, the future outlook for the markets remains uncertain, with investors waiting with bated breath for the release of key economic data. The Federal Reserve's interest-rate outlook will be a key factor in shaping the markets, with investors expecting a rate cut in the near term. The data void has left investors on edge, and any significant developments in the economic data will have a significant impact on the markets. In conclusion, the resolution of the government shutdown has lifted investor sentiment and sparked optimism about the economy. However, the data void has left investors on edge, and the future outlook for the markets remains uncertain. As investors wait for the release of key economic data, they will be closely watching the Federal Reserve's interest-rate outlook, which will have a significant impact on the markets.