(Bloomberg) – U.S. stock futures have climbed as a sign that Washington lawmakers avoid closure of government.
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The S&P 500 contract rose 0.8% as the Stop Gap Funding Bill passed and is set to avoid US government shutdowns. This is a change in mood after the benchmark index extended its three-week route by more than 10% on Thursday, and is a technical threshold for the correction. In Europe, the STOXX 600 index rose 0.4%. Kering SA plummeted 11% as a designer’s choice to oversee Gucci’s disappointing investor Makover.
In Asia, the CSI 300 index of mainland China stocks reached its highest level this year, seeking more policy support to drive consumption.
Treasuries returned some of the profits from the previous session when investors jumped into Have Assets in a move that supported the dollar by lifting money to the record. Greenback’s profits were extended until Friday, strengthening the gauge of the currency on the third day.
The pound weakened on Friday after it was shown that the UK economy had contracted unexpectedly in early 2025. Gross domestic product fell 0.1% in January, resulting in a decline in manufacturing and construction. Economists expected an increase of 0.1%.
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Washington state lawmakers say avoiding government shutdowns will remove uncertainty among traders who have already surprised the threat to US economic growth from President Donald Trump’s tariff war. Two months after President Trump, Wall Street sentiment changed from optimism to tension. The Wall Street slump erased $5 trillion from US stocks as investors kept the risk down and some people moved their money to European and Asian markets.
“This is a very unstable environment and we expect this to continue in the near future,” Thomas Taw, head of BlackRock’s APAC investment strategy, told Bloomberg Television. He said the stock market has emerged as a compelling opportunity as US stocks have fallen from record highs “like Europe and to some degree China.”
According to Michael Hartnett of Bank of America Corp., recent US stocks are more likely to encourage policy interventions, not the beginning of a new bear market, but a technical revision.
The S&P 500 has entered the revised territory of 10% since its peak in February. The bear market is defined as a 20% decline from its recent highest.
The BOFA strategist, who preferred international equities over the US this year, recommended that you buy the S&P 500 for 5,300 points.
“I say this is a revision and not the bear market for US stocks,” Hartnett wrote in a note. “A new decline in stock prices will cause a flip in trade and monetary policy as stocks threaten a recession.”
Congressional Democrats and Republicans are engaged in a chicken high stakes game against Democrats’ claim that the spending package includes several restrictions on Elon Musk’s Doge’s cost-cutting crusades, with Republicans boldly rejecting opposition parties and refusing to blame for the shutdown. Senate Democratic leader Chuck Schumer has dropped his threat to block the Republican spending bill, paving the way for avoiding the US government shutdown.
Traders are also tracking the outlook for a ceasefire in Ukraine. Russian President Vladimir Putin said he wanted to discuss the proposed ceasefire with Trump, but warned that the ceasefire should lead to a long-term resolution of the war. At the same time, the US is tightening sanctions against Russia by limiting energy payments, even as it pursues peace talks.
Meanwhile, investors have been the most bullish in the Treasury compared to stocks for at least three years, as Trump’s tariff policies threaten to end an era of US exceptionalism, a Live Pulse survey of the Bloomberg market showed.
In Asia, Chinese stocks have increased policy hopes, but bank stocks have become more sophisticated as investors may reduce reserve ratio requirements. CK Hutchison Holdings Ltd. plunged Friday after a top Chinese office dealing with Hong Kong issues reposted a sharp attack on the conglomerate’s decision to sell shares in the Port of Panama to appease Trump.
Elsewhere, oil has advanced as the US tightened sanctions and gold traded within $3,000 whiskers.
Important Events of the Week:
Some of the main market movements:
stock
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The Stoxx Europe 600 rose 0.3% as of 8:27am London time
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S&P 500 futures rose 0.8%
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Nasdaq 100 futures rose 1%
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Dow Jones Industrial Average Futures rose 0.6%
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MSCI Asia-Pacific Index rose 0.5%
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MSCI Emerging Market Index rose 0.9%
currency
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The Bloomberg Dollar Spot Index has been largely unchanged
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The euro was $1.0851 and was barely changed
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Japanese yen fell 0.7% per dollar to 148.86
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Offshore Original rose 0.2% per dollar to 7.2321
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The UK pound fell 0.1% to $1.2936
Cryptocurrency
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Bitcoin rose 2.8% to $82,553.62
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Ether rose 3.2% to $1,900.86
Bonds
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Treasury yields for 2010 increased 2 basis points to 4.29%
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Germany’s 10-year yield increased two basis points to 2.87%
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The UK’s 10-year yield was 4.67%, but little changed
merchandise
This story was created with the support of Bloomberg Automation.
– Support from John Chen and Sagarika Jazingani.
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