Global stock markets rallied at the start of the week amid growing optimism that the US government shutdown will soon end. S&P 500 futures rose 0.5%, while the Nasdaq 100 gained 0.8%, after Senate Republican leader John Thune said a deal to end the 40-day shutdown was "taking shape." Several Democratic senators were reportedly ready to support the bill if final details could be agreed upon.

Positive sentiment was also evident in Asian markets, with South Korean stocks leading the gains. Meanwhile, US Treasury yields rose to 4.12% as investors shifted to riskier assets, while the Japanese yen weakened 0.2% against the US dollar. The end of the shutdown is expected to reopen access to key economic data such as inflation and employment, which have been stalled and have left the Fed's policy direction uncertain.

Despite the improving sentiment, markets remain cautious after a sharp decline in technology stocks last week raised concerns about overvaluation. Analysts believe the release of economic data will provide more clarity for the Fed in determining its next interest rate move. However, several Fed officials remain cautious about additional rate cuts.

In commodity markets, gold prices edged higher as investors weighed the weakening US economy against news of progress on a political agreement in Washington. Meanwhile, oil prices remained stable as market participants assessed the risks of oversupply and the impact of new US sanctions on Russia. (asd)

Source: Newsmaker.id