A wave of optimism swept through global financial markets on Monday following a critical legislative move in Washington to end the prolonged U.S. government shutdown. Investor sentiment, which had been dampened by weeks of political gridlock, rebounded sharply, propelling major indices higher.
In London, the FTSE 100 index approached a historic peak, climbing over 1% and coming within striking distance of its all-time high. The rally was broad-based across Europe, with significant gains also recorded in Frankfurt, Paris, and other continental bourses.
The surge was triggered by a weekend vote in the U.S. Senate to advance a compromise funding bill. This development, seen as the first concrete step toward reopening federal operations, alleviated concerns about the economic disruption caused by the lengthy shutdown. Those worries had recently pushed consumer confidence to multi-year lows and contributed to market volatility.
Wall Street opened strongly, with the Dow Jones, S&P 500, and technology-heavy Nasdaq all posting solid gains in early trading. Technology and airline stocks were among the notable beneficiaries, with investors betting on a return to normalcy for both business and travel.
The positive shift also lifted other asset classes. The price of gold, often a haven in times of uncertainty, rose approximately 2%, while oil prices firmed.
Analysts noted that the resolution, if finalized, would not only remove a significant overhang from markets but also pave the way for the release of a backlog of delayed U.S. economic data. This influx of information, while welcome, is anticipated to introduce a new phase of market volatility as investors digest the full impact of the shutdown period.
The day’s trading underscored how political developments in Washington remain a potent driver of global financial sentiment, with markets swiftly rewarding signs of stability and progress.