US stock futures climbed around 1% on Monday as the Senate moved to end the longest government shutdown in US history, with a group of moderate Democrats breaking ranks to back a compromise. The development has lifted risk sentiment across global markets, with European and Japanese equities up roughly 1.5%.
Over the weekend, President Donald Trump floated two new proposals aimed at supporting the economy: the introduction of 50-year mortgages and a $2,000 dividend to be paid to every “non-rich” American. Investors viewed the suggestions as early signs of renewed fiscal stimulus.
With about 90% of S&P 500 companies having reported results, earnings growth for the season is tracking 17%, while revenue growth stands at 8%. In Europe, the energy sector surprised to the upside, delivering 2.7% EPS growth versus expectations for a 6.8% decline.
Gold rose 2% to $4,087 an ounce, as traders repositioned for a potential “debasement trade” amid expectations of looser fiscal policy.
With the shutdown likely nearing its end, market attention will now shift to upcoming US CPI data and labor market indicators, which could shape expectations for future Federal Reserve moves.
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