Global stocks rose on Tuesday on expectations that the US government shutdown would end. However, concerns about the high valuations of technology stocks limited gains.
European indices were supported, particularly by record gains in the London FTSE 100. The pound’s decline after weak employment data strengthened the likelihood of a Bank of England (BoE) rate cut.
Markets are preparing for a “flood of data” as the US Senate approves the deal to restart federal funds.
This development will trigger the release of many delayed data points, from unemployment to industrial production, and could create volatility in the markets.Investec Chief Economist Philip Shaw said, “This data flow will be the most important factor in determining the direction of the market.” Fed Chairman Jerome Powell also emphasized in his last meeting that expectations of interest rate cuts should be approached cautiously.
In the US, the S&P 500 rose 1.54% and the Nasdaq rose 2.8%, marking their strongest performance in recent months. However, Japan’s SoftBank selling its $5.83 billion stake in Nvidia put some pressure on technology stocks.
British pound fell 0.4% to $1.3128 following weak employment and spending data. The Japanese yen tested its weakest level since February.
On the commodities front, gold traded above $4,100 per ounce, copper rose 0.5%, and Brent crude fell to $63.90.
