Global stocks rally on hopes the U.S. shutdown is nearing an end

Global stocks rose on Monday as the longest US government shutdown on record neared its end.

The US Senate has The first stage has been approved A bipartisan agreement could end the shutdown. The agreement would fund the government until January 30^y Next year, that will likely reverse some of the permanent layoffs of government employees that occurred during the 35-day crisis.

Strategists said the potential end of the lockdown would provide a boost to investors after a week in which AI and technology stock tensions sent global stocks tumbling.

Speaking on CNBC’s “Europe Early Edition” on Monday, Jason Paltrowitz, executive vice president at OTC Markets, said the decision will be positive, not just in the US but for global markets more broadly.

“I think all the news is good news,” Paltrowitz said. He added: “I think the market needs to see that we get through this. I think investors want some guarantees for the economy and for their investments.”

US stock futures were in positive territory before the opening bell on Monday, while European stocks rose on Monday, with… Stokes 600 Gain 1.4% and UK FTSE 100 indexGermany Dax And France CAC 40 All in positive territory.

Edmond de Rothschild Asset Management said in a quick comment that the remaining possibility of negative economic consequences prompted the two sides in Congress to resume talks with the aim of reaching a compromise.

The aviation sector was a major flashpoint throughout the stalemate. The growing shortage of air traffic controllers due to non-payment of salaries has created a crisis Reducing the number of trips In recent days.

Fears of thousands of flights over the Thanksgiving holiday, which would impact travel and leisure stocks, now appear to have diminished. US airline stocks rose in pre-market trading on Monday.

Consumer sentiment also came under scrutiny during the stagnation, as investors struggled to darken the data amid growing concern about the health of the US economy. Investment strategists noted that open data reporting would ultimately provide greater clarity to markets.

Jonathan Pingel, chief US economist at UBS investment bank, said the release of the data would help reduce uncertainty for the Federal Open Market Committee (FOMC). He said a raft of data will be released from August, which is expected to be positive, but may later give way to data that may look “very weak” by comparison.

“The Fed has been floundering in this fog and I think the markets would like some clarity one way or another,” Pingel told CNBC’s “Squawk Box Europe” on Monday.

Pingel said the closure represents a “major inconvenience” and “a drag on growth.” “There’s a certain amount of growing encouragement,” Pingel said of news of a potential deal on Capitol Hill. “Businesses will be happy to have an effective government and get past reporting.”

Nick Nelson, global equity strategist at Absolute Strategy Research, said the deal was “good news” for markets. Speaking on CNBC’s Squawk Box Europe, he pointed to last week’s weaker consumer confidence data, noting that the longer the lockdown lasts, with people not getting paid, it could eventually lead to lower consumption.