Wall St futures jump on progress.
Wall Street futures rose sharply late-Sunday after the Senate voted in favor of a key step towards ending the longest ever government shutdown in the country.
Futures rose after Wall Street logged steep losses through the past week as investors dumped technology stocks amid heightened concerns over a potential artificial intelligence-fueled bubble
Senate votes to break Democratic filibuster, spending bill progresses
The U.S. Senate on Sunday evening voted 60-40 to end a Democrat-backed filibuster and advanced a spending bill for consideration.
The break came after eight Democratic senators reached a deal with Republican leaders to reopen the government in exchange for a future vote on extending affordable care subsidies, as the GOP had demanded.
The spending bill will now be considered again on the Senate floor, and requires 60 votes to pass.
The prospect of a potential breakthrough in Congress encouraged investors, as the U.S. economy grapples with its longest ever government shutdown. The shutdown entered its 40th day on Sunday, as Congress failed to approve a series of funding bills amid disagreements over healthcare subsidies.
Global shares jump.
Global shares rose on Monday on optimism that an end to the historic U.S. government shutdown was in sight, while yields rose and the dollar nursed losses from last week.
The U.S. Senate on Sunday moved forward on a measure aimed at reopening the federal government and ending a now 40-day shutdown that has sidelined federal workers, delayed food aid and snarled air travel.
In a procedural vote, senators advanced a House-passed bill that will be amended to fund the government until January 30 and include a package of three full-year appropriations bills.
The breakthrough helped push Nasdaq futures up 1.27% while S&P 500 futures rose 0.74%. EUROSTOXX 50 futures and DAX futures jumped about 1.5% each, while FTSE futures gained 0.85%.
ECB’s rates at right level.
The European Central Bank’s interest rates are at the appropriate level barring changes in the economic situation, the ECB’s Vice President Luis de Guindos said in an interview published on Monday.
“If inflation developments deviate, or if projections are modified, and if transmission is not correct, then we may change,” de Guindos told Portuguese daily Diário de Notícias. “But so far, we firmly believe that the level of interest rates is correct.”
De Guindos emphasized that the ECB needs to maintain a “very prudent and cautious” approach to setting rates. He noted that uncertainty has decreased over the past six months, particularly following a trade agreement between the European Union and the United States.
Despite the reduced uncertainty, the ECB Vice President indicated that the central bank would continue its careful approach to monetary policy decisions.
He said the ECB needed to remain “very prudent and cautious” when setting rates even though the level of uncertainty, especially after a trade deal between the European Union and the U.S., had decreased in the past six months.
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