Global Markets Rally as US Shutdown Relief Boosts Investor Sentiment; Traders Eye Yen Movements

Global stock markets surged today after optimism surrounding the potential end of the US government shutdown lifted investor confidence worldwide. The Dow Jones Industrial Average and S&P 500 advanced to new highs, driven by relief in Washington’s budget negotiations and renewed risk appetite. Traders are also closely monitoring yen movements, as Japan’s currency remains under pressure amid diverging monetary policies between the Bank of Japan and the US Federal Reserve.

Asian markets followed the positive cues, though foreign investors have been cautious, pulling out over $10 billion from regional equities in November as the earlier AI-driven rally shows signs of fatigue. Meanwhile, European shares opened higher, reflecting improved sentiment across global markets. The rally was supported by easing bond yields, rising energy stocks, and strong performances in the technology and automotive sectors.

Analysts note that while the short-term relief rally is encouraging, markets remain sensitive to macroeconomic indicators such as inflation, interest rate outlooks, and geopolitical developments. The yen-watch remains a key theme, with traders anticipating potential interventions if currency volatility continues. Overall, today’s market momentum reflects a renewed sense of optimism as investors bet on fiscal stability and global economic resilience.