"European markets have enjoyed a positive start, feeding off the news that the historic 40-day US shutdown look set to reach a conclusion this week. On the data front, the week kicked off with inflation out of China, where a surprise rebound into positive territory brought the highest figure since February (0.2%). Optimists will see this as a sign of resurgent demand from Chinese consumers, with Golden Week celebrations sparking a surge in travel, food, and transport spending."
"This weekend saw a breakthrough that brought a 60-40 vote in favour of passing a bill that will end the historic 40-day shutdown. Notably, the pressure had ratcheted up off the back of aviation disruption that saw over 3000 flights cancelled on Sunday alone. This was a clear sign that the leaders in Washington cannot simply let this impasse last forever, with the Democrats essentially giving up on their central demands to extend the Affordable Care Act tax credit system which expires on December 31."
"While markets cheer the news of a likely end to the shutdown, Trump had already sought to win over middle America by promising $2000 tariff-funded checks for non-high-income citizens. A sudden injection of disposable income for the entire country undoubtedly provides a potential shot in the arm for businesses reliant on a strong consumer. However, the caveat here is that such a promise comes at a time where we also see growing concern that the U"
European markets opened higher on expectations that the 40-day US government shutdown will end this week. Chinese inflation unexpectedly rebounded to 0.2%, the highest since February, driven by Golden Week-related travel, food, and transport spending. Investors shifted focus away from tech valuation worries and bought into the bull market, favouring commodity-focused firms such as precious metal and oil & gas stocks. A weekend 60-40 congressional vote advanced a bill to end the shutdown after aviation disruptions and thousands of flight cancellations increased pressure. Democrats conceded on extending the ACA tax credit, delivering only a stopgap through January 31. Promised $2000 tariff-funded checks aim to boost consumer spending but raise fiscal concerns.
Read at London Business News | Londonlovesbusiness.com
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