The futures of the American market showed a rise on November 10. Futures of major indices rose more than 1 percent. This is because the US government shutdown is likely to end. This is indicated by the action of the US Senate. At noon Indian time, S&P 500 futures were up about 0.8 per cent, while Nasdaq 100 futures were up about 1.3 per cent.
Government work has come to a standstill for the last 40 days
60 senators voted in support of the proposal to approve the US government’s expenditure till January 30, while 40 opposed it. This has increased hopes of ending the shutdown. For the last 40 days, the US government (US Government)’s operations have come to a standstill. This is the largest government shutdown in American history. It is said that some Democrats have supported this bill. This is expected to end the ongoing political deadlock in America.
The market may regain its brightness once the shutdown ends.
Traders say that the expectation of resumption of government work in America has affected the market sentiment. This may bring the market back to life after the selloff in technology stocks last week. Investors in America are waiting for data related to jobs and inflation. It has been delayed due to the shutdown. These data will help the Federal Reserve to decide about the next reduction in interest rates.
Positive impact on European and Asian markets also
The effect of the rise in the futures of the American market was visible on other markets as well. European stock futures rose about 1.5 percent, while Asia-Pacific markets rose about 1 percent. US Treasury yields also showed a jump. The yield of 10-year US bonds reached 4.14 percent. However, analysts say that the US government’s spending proposal requires the approval of both houses of Congress. After this it will be sent to President Donald Trump.