Global investors are breathing a sigh of relief as the 40-day US government shutdown finally appears to be nearing resolution. After intense negotiations, Democrats agreed to back a funding bill following concessions from the Trump administration on medical insurance subsidies and food stamp programmes.
The administration also confirmed that no public employees would lose their jobs or pay during the shutdown. Both the Senate and the House are expected to pass the bill shortly — a move that could inject renewed confidence into markets.
As soon as news of the breakthrough emerged, global indices rallied. Although concerns around the artificial intelligence (AI) sector persisted, the overall mood in Asia turned upbeat. AI-linked stocks dipped slightly in early trade but quickly stabilised, pushing indices higher across Japan, South Korea, and China.
Gold and crude oil also reacted sharply. Gold jumped 1.3% to trade above $4,050 an ounce, while Brent crude bounced back to $64 a barrel. The surge reflects both improved sentiment and investor repositioning after weeks of safe-haven demand.
European markets, however, remained under pressure on Friday, weighed down by AI-related valuation worries. Rightmove shares plunged 28% on fears that heavy AI investment could reduce profitability, while ITV shares soared 16.6% amid reports of acquisition talks with Comcast.
In the US, the Nasdaq initially plunged 490 points due to persistent AI sector fears but clawed back over 450 points by close. The Dow Jones and S&P 500 both recovered from intraday losses to end slightly higher.
Despite Friday’s rebound, all three major indices ended the week lower — Nasdaq fell 3%, S&P 1.6%, and Dow 1.2%. Analysts said investors largely ignored warnings from big banks of a 10–20% correction, instead viewing the pullback as a buying opportunity.
US futures turned higher early Monday, with Dow up 0.28%, S&P 0.55%, and Nasdaq 0.88%, as hopes grew for a formal end to the government stalemate.
Asian equities opened on a stronger note as optimism over the US situation spread eastward. Japan’s Nikkei climbed 1%, South Korea’s Kospi rose 0.8%, Hong Kong’s Hang Seng gained 0.35%, and China’s CSI 300 advanced 0.2%.
China’s latest data presented a mixed bag: consumer inflation rose 0.2% in October after months of deflation, while factory output dipped. Exports fell 25% year-on-year, but the recent cut in US tariffs — now at 47% — may help revive shipments in coming months.
After starting Friday’s session strong and slipping mid-day, Indian markets staged a solid comeback. The Sensex climbed back 536 points from the day’s low and Nifty rose 174 points before ending with marginal losses.
For the week, both indices closed about 1% lower, but foreign investors turned heavy buyers on Friday, purchasing ₹4,581 crore worth of shares. Domestic institutional investors bought an additional ₹6,674 crore.
Banking, metals, and auto stocks led the rally, while FMCG, pharma, and IT counters lagged.
Nifty closed 17 points down at 25,492.30, Sensex slipped 94 points to 83,216.28, and Bank Nifty added 322 points to close at 57,876.80.
Analysts believe Nifty may find support near 25,300, with resistance around 25,650–25,800 and a potential upside target of 26,000 if momentum sustains.
Gold prices rose sharply to $4,052 on Monday morning after hovering near $4,001 on Friday. Analysts remain split — 59% expect stability this week, 32% foresee gains, and 9% predict declines — but many expect gold to test $4,200 by December-end.
In Kerala, 22-carat gold remained steady at ₹89,480 per sovereign over the weekend after a ₹400 drop on Friday.
Silver climbed to $49.33 an ounce, while platinum traded at $1,562, palladium at $1,385, and rhodium at $7,825.
Industrial metals moved in different directions: copper eased 0.03% to $10,720 a tonne, aluminium gained 0.26% to $2,851.77, and zinc, tin, and lead advanced, while nickel declined.
Rubber prices rose 0.77% to 169.50 cents per kg, coffee gained 3.69%, tea increased 2.4%, and palm oil dipped 0.94%. Cocoa dropped 2.78% to $6,013 a tonne.
The US Dollar Index slipped to 99.60 before inching up to 99.68 in early trading. The euro climbed to $1.1557, the pound to $1.3154, while the yen weakened to 153.80 per dollar.
US 10-year bond yields rose to 4.125%. In India, the rupee closed at ₹88.66 against the dollar as the Reserve Bank continued its market intervention.
Brent crude ended Friday at $63.63 a barrel and rose to $64.09 after the shutdown news. WTI traded at $60.22, Murban at $66.21, and natural gas jumped 3% to $4.46.
Cryptocurrencies mirrored the upbeat tone of global markets. Bitcoin climbed above $101,300, extending last week’s momentum as investor sentiment improved. Ethereum (Ether) hovered around $3,320, while Solana rose to $156 after earlier weakness.
Traders attributed the rebound to improved risk appetite and expectations that easing US political tensions could restore liquidity in digital assets. Still, analysts warn of continued volatility as crypto markets remain highly sensitive to global macroeconomic shifts.