Global Markets Rally as Shutdown Deal Nears the Finish Line

Global stock markets kicked off the week with a broad-based rally as signs emerged that U.S. lawmakers are edging closer to a deal to end the prolonged government shutdown. Equities in the U.S., Europe, and Asia moved higher, with cyclical and growth-sensitive sectors leading the advance as investors priced in reduced political risk and a clearer policy path ahead.

In the U.S., major indices extended gains as headlines suggested progress toward a funding agreement that would reopen government agencies and restart the flow of key economic data. That prospect helped ease concerns that the Federal Reserve and markets were being forced to “fly blind” on jobs, inflation, and growth, boosting risk appetite and lifting sentiment across credit and equity markets.

European and Asian stocks followed suit, with exporters, financials, and industrial names benefiting from the improved tone. Safe-haven assets such as Treasuries and gold saw modest outflows as investors rotated back into risk, while the U.S. dollar traded mixed against major peers.

For traders, the focus now shifts to the final shape of any shutdown deal and the timing of deferred data releases. A swift resolution could reinforce the current relief rally, while any last-minute political setbacks risk injecting another bout of volatility into already sensitive markets.