The vote as yet needs to pass the House of Representatives and be given a Presidential signature, but the US Senate’s approval of an interim deal to reopen the US government is giving a tailwind to most risk assets. Bourses are once again trying to make the high ground, even after the news of Japan’s SoftBank selling all its Nvidia exposure.
The US economy would suffer irretrievably in the event of a prolonged government dysfunction. That much was made clear by one of the White House advisers, who warned of a potential contraction in the fourth quarter unless government buildings reopen promptly.
A smorgasbord of factors incentivised stock market participants to bank some profits after a more-than-decent run in recent weeks and months. These include a slowdown in manufacturing activity worldwide, signalling stuttering economic growth. The longest government shutdown in US history did little to maintain investor confidence, and private data gained relevance.
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