Stocks rise as hopes grow for end of US government shutdown

Stock markets went up on Monday because investors believe the United States is close to ending its record 40-day government shutdown. Reports said politicians have reached a deal to reopen the government, which improved market confidence.

The shutdown had caused delays in many government services, including airport operations during the busy Thanksgiving travel period. It also made investors nervous about the economy. A recent University of Michigan survey showed that people felt less confident about the economy in November.

However, CNN and Fox News reported that senators have agreed on a temporary deal that will fund the government until January. The deal will restore food assistance benefits, reverse the firing of thousands of federal workers, and include a vote on extending health care subsidies.

President Joe Biden said, *“It looks like we're getting close to the shutdown ending.”* A vote is expected soon.

Economists warn that the shutdown has already caused financial damage. The Congressional Budget Office said it could reduce U.S. economic growth by up to 1.5% this quarter if it continued.

Because of the improved outlook, stock markets rose in Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Taipei, and Manila. Markets in Singapore and Wellington slipped.

Reopening the government will also allow important economic reports—like jobs data—to be released again. The Federal Reserve uses these reports to decide whether to cut interest rates. Recently, investors have had to rely on private surveys, including one showing U.S. layoffs at the highest level in 22 years.

Some investors think the Fed may cut interest rates again soon, but several Fed officials say they are still more worried about inflation than unemployment.

At the same time, there is still concern that tech stocks may be too expensive after this year’s strong rally led by artificial intelligence companies.

Key Market Figures (around 02:30 GMT)

Tokyo - Nikkei 225: UP 1.0 percent at 50,766.89 (break)
Hong Kong - Hang Seng Index: UP 0.5 percent at 26,372.47
Shanghai - Composite: UP 0.1 percent at 4,000.02
Euro/dollar: DOWN at $1.1558 from $1.1563 on Friday
Pound/dollar: DOWN at $1.3148 from $1.3160
Dollar/yen: UP at 153.83 yen from 153.46 yen
Euro/pound: UP at 87.90 pence from 87.86 pence
West Texas Intermediate: UP 0.6 percent at $60.12 per barrel
Brent North Sea Crude: UP 0.6 percent at $63.98 per barrel
New York - Dow: UP 0.2 percent at 46,987.10 (close)
London - FTSE 100: DOWN 0.6 percent at 9,682.57 (close)