INSTANT VIEW-Markets cheer signs of progress to end US government shutdown

Reuters
2025/11/10
INSTANT VIEW-Markets cheer signs of progress to end US government shutdown

Nov 10 (Reuters) - The U.S. Senate on Sunday moved forward on a measure aimed at reopening the federal government, with a procedural vote clearing the way for lawmakers to amend a bill that can fund the government until January 30.

Financial markets welcomed progress that raises the prospect of resolving a 40-day shutdown that has likely hit economic growth.

S&P 500 futures ESc1 rose 0.8% and Nasdaq 100 futures NQc1 rose 1.3%. Risk sensitive currencies such as the Australian dollar AUD= climbed. Safe-havens such as U.S. Treasuries 0#USBMK= and the yen JPY= slipped.MKTS/GLOB

QUOTES:

JACK CHAMBERS, SENIOR RATES STRATEGIST, ANZ, SYDNEY

"Even if it's not concrete (that) we get an end to the shutdown in the next 24 hours, it seems a bit clearer now that we're moving in that direction, that the gears are starting to shift.

"We don't think it's going to lead to a really sustained selloff in rates, just because it's not like markets had responded that negatively to the shutdown in the first place. Markets treated this assuming it was going to end."

GEORGE BOUBOURAS, HEAD OF RESEARCH, K2 ASSET MANAGEMENT, MELBOURNE

"Any resolution to the shutdown is obviously a good signal for markets. They will know the shutdown to date will be a negative for the economy, but it will reinforce the Fed's easing bias."

LLOYD CHAN, SENIOR CURRENCY ANALYST, MUFG, SINGAPORE

"A deal to end the government shutdown could spark a meaningful market reaction, primarily by reducing data uncertainty and lifting investor sentiment. The recent rebound in U.S. equities appears driven by a combination of technical recovery following the recent sell-off and optimism that a resolution to the shutdown may be near."

HEMANT MISHR, CHIEF INVESTMENT OFFICER, S CUBE CAPITAL, SINGAPORE

"This is an interim solution, because it only solves the problem till the end of January 2026... This is, in some ways, a relief rally.

"The biggest fear in the market has been its impact on Q4 numbers, because the economy will slow down, and the lack of relevant data also has been something that's been holding them back. I think obviously the data flow will help, but more importantly, the real economy will not shrink."

US Senate advances bill to end federal shutdown nL1N3WL05L

(Reporting by Tom Westbrook and Rae Wee; Editing by Kim Coghill)

((tom.westbrook@tr.com; +65 6973 8284;))

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