US Government Shutdown Ends: What It Means for Yen Stability and Stock Market Investors
SINGAPORE – Global markets steadied on Thursday as the US government reopened following the longest shutdown in history. Investors are now focusing on upcoming economic data to assess the Federal Reserve’s next policy moves and the broader outlook for monetary policy.
US stock futures remained near flat, while Japan’s Topix reached a record high, reflecting a shift from artificial intelligence stocks to broader sectors and renewed confidence in cyclical industries. Gold prices held steady above $4,200 per ounce, supported by expectations of lower interest rates. The yield on the US 10-year Treasury note remained stable at 4.09%.
US President Donald Trump signed legislation to end the 43-day government shutdown, allowing the release of delayed economic data, including jobs and inflation reports expected next week. Economists emphasize these figures will be crucial in shaping Fed Chair Jerome Powell’s December policy decision after last month’s quarter-point rate cut.
“Now that the government has reopened, we should receive a wealth of data that will provide clearer justification for Powell’s rate cuts,” said Damian Rooney, director at Argonaut in Perth.
Asian markets showed mixed performance: Hong Kong’s Hang Seng index slipped slightly, the Shanghai Composite gained 1%, and Australia’s ASX declined by 0.5%, although gold and lithium miners performed well amid hopes for further monetary easing.
On Wall Street, the Dow Jones Industrial Average hit a record high, while the tech-focused Nasdaq edged lower. In Europe, both the FTSE 100 and STOXX 600 indexes reached new highs, bolstered by strong performances in banking and mining sectors.
The Japanese yen weakened sharply after the new prime minister urged the Bank of Japan to proceed cautiously with rate hikes. The yen fell to 179.49 against the euro and 154.92 against the US dollar, prompting officials to signal the possibility of market intervention.
Brent crude oil prices fell to a three-week low at $62.34 per barrel following OPEC’s projection of a slight supply surplus in 2026.
— Reuters
Special Analysis by Omanet | Navigate Oman’s Market
The reopening of the US government and the anticipated release of key economic data signal potential monetary policy shifts, creating both opportunities and risks for businesses in Oman tied to global trade and investment flows. Smart investors should monitor Federal Reserve decisions closely, as further rate cuts could enhance capital availability and stimulate regional growth, while also preparing for volatility in commodity prices like oil and gold. Entrepreneurs in Oman should leverage these developments to diversify portfolios and tap into sectors likely to benefit from renewed global economic confidence and easing financial conditions.
