Europe Asia News

According to analysts, the U.K.’s FTSE index is expected to open up 0.9%, Germany’s DAX up 1.5%, France’s CAC 40 up 1.4%, and Italy’s FTSE MIB up 1.54%.

The expected rise came after senators late Sunday night took a crucial step toward a potential bipartisan deal that could end the historic government shutdown.

The bipartisan agreement being discussed in the Senate calls for reopening the government until January and reversing some of the recent mass federal layoffs.

According to a survey by the University of Michigan released on Friday, concerns over the shutdown have pushed consumer confidence to its lowest level in more than three years, and only a few major economic reports have been released during the closure.

U.S. stock futures rose Sunday night. After a week dominated by concerns over high valuations of AI-related stocks, the potential deal provided a welcome boost for investors.

Asia-Pacific markets also rose overnight, recovering from last week’s tech-driven losses. Investors in Asia also assessed China’s October inflation data, which came in above expectations.

South Korea’s Kospi index rose about 3%, led by banks and insurers, while the small-cap Kosdaq index gained 0.86%.

Japan’s Nikkei 225 index climbed 0.98%, and the broader Topix index rose 0.33%. The yield on Japan’s 10-year government bonds rose to 1.695%, the highest level since October.

Hong Kong’s Hang Seng index also gained 0.54%, extending its recovery rally, while mainland China’s CSI 300 index slipped 0.26%. Australia’s S&P/ASX 200 index added 0.68%.