Global Markets Rise Despite U.S. Government Shutdown

U.S. stock futures started the week higher even as the U.S. federal government shutdown dragged on into another week. With official economic data paused, the key focus this week will be on the release on Wednesday of the Federal Reserve’s minutes from its latest meeting. Friday brings the University of Michigan preliminary consumer survey for October.

Meanwhile, Japanese stocks rose sharply and the yen weakened after pro-stimulus candidate Sanae Takaichi won the leadership election of Japan’s ruling party. Oil prices edged higher.

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—U.S. stock futures for the S&P 500 and Nasdaq were last up 0.3% and futures for the Dow Jones Industrial Average climbed 0.2%.

—Japan’s Nikkei 225 index closed up 4.8%. Heavy-machinery, electronics and auto stocks led gains. “Takaichi is seen as pro stimulus and likely to pursue easier fiscal and monetary policies,” Jefferies economist Mohit Kumar said in a note. Hong Kong’s Hang Seng dropped 0.7%. Markets in China were closed.

—In Europe, the Stoxx Europe 600 was flat in morning trading with other stock markets in Europe mixed. France’s CAC 40 fell more sharply after opening down as French Prime Minister Sebastien Lecornu resigned after only a month in the role. French government bond yields were at a 10-day high.

—The dollar rose to a 10-day high against a basket of currencies as the yen weakened and oil prices gained. The DXY dollar index was recently at a high of 98.212 and against the yen was up 1.9% to a two-month high of 150.43 yen.

—U.S. Treasury yields rose, particularly at longer maturities. Ten-year U.S. Treasury yields were last up 3 basis points to 4.152%, while 30-year yields were up 4.5bps to 4.759%, according to Tradeweb data.

—Bitcoin stayed higher after rising to a record Sunday as investors seek alternative assets amid the U.S. government shutdown and political concerns elsewhere. Meanwhile, the U.K. is grappling with fiscal concerns ahead of November’s autumn budget and the French government remains in crisis. Bitcoin was last up 0.9% to $123,921 after hitting a record high of $125,653, according to LSEG data.

—Oil prices rose after OPEC+ agreed to a more modest-than-expected increase in monthly output for November. The group of oil-producing nations is set to boost production by 137,000 barrels a day next month, the same as in October. Brent crude and WTI were both up 1.4% to $65.41 and $61.72 a barrel, respectively, after rising more than 1.5% earlier in the session.

—Gold futures surged to another record high, topping the $3,900 mark.

Write to Barcelona Editors at barcelonaeditors@dowjones.com

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