Post by : Badri Ariffin

Global markets took a breather on Thursday following Congress's decision to conclude the longest government shutdown in U.S. history, leading investors to adopt a cautious yet optimistic stance as economic data resumption looms. U.S. stock futures remained near neutral, reflecting a wait-and-see attitude.

In the Asian markets, Japan's Nikkei index gained 0.5%, and the broader Topix climbed nearly 1% to reach a historical peak. Investors shifted funds away from high-performing AI stocks toward sectors perceived to have more stable growth. Meanwhile, gold prices surged past $4,200 per ounce, while U.S. Treasury yields held steady, particularly with the 10-year yield at 4.067%.

The conclusion of the shutdown is anticipated to pave the way for delayed economic indicators next week, offering clearer insights for the Federal Reserve concerning interest rate trends. Analysts point out that lower rate environments typically promote investments in gold and precious metals, leading to increased interest in Australian lithium and gold mining stocks. However, broader Australian markets saw a 1% decline as various sectors faced challenges.

Meanwhile, Hong Kong’s Hang Seng index slightly receded from a month-high, while the Shanghai Composite inched up by 0.1%. On Wall Street, the Dow Jones reached record highs, even as the Nasdaq saw a pullback. In Europe, the mining-focused FTSE 100 set a record, with banks propelling the STOXX 600 index to its all-time high, and Italy’s FTSE MIB nearing a 25-year milestone.

With the Japanese yen continuing its downward slide, it reached historic lows against the euro and approached a nine-month low against the U.S. dollar after Japan’s new premier urged caution regarding further rate hikes. Conversely, the Australian dollar saw a slight uptick following robust employment data in October which dampened expectations for imminent interest rate cuts.

Oil markets witnessed a decline in Brent crude prices to $62.48 a barrel, spurred by OPEC's forecast of a modest supply surplus expected in 2026.

As investors globally balance their optimism stemming from U.S. policy developments with caution over economic indicators, market volatility is likely to persist ahead of essential data and central bank actions.

#Business News