US Stock Futures Advance as Risk of Shutdown Eases: Markets Wrap

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(Bloomberg) – American stock futures ascended as signs that legislators in Washington will avoid closing the government.

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The S&P 500 contracts increased by 0.8 %, as the Stopgap financing bill seemed to pass and avoid closing the US government. This is a change in the mood after the measurement index extended a period of three weeks exceeding 10 % on Thursday, which is the technical threshold for correction. In Europe, the Stoxx 600 increased by 0.4 %. KERING SA decreased by 11 % as the designer’s choice to oversee Makover in Gucci disappointed.

In Asia, the CSI 300 index of China’s shares on the mainland has not touched the highest level of this year, on the prospects for more policy support to encourage consumption.

Treasury bonds prepared some gains from the previous session, when investors rushed to Haven’s assets in a move that raised gold to the dollar record and support. Greenback’s gains extended to Friday, strengthening a currency scale for the third day.

The pound weakened on Friday after the data showed that the UK economy was unexpectedly shrinking at the beginning of 2025. GDP decreased by 0.1 % in January, and decreased in manufacturing and construction. Economists expect a 0.1 % increase.

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The legislators in Washington will avoid the government’s closure to remove uncertainty for merchants, which already frightens the threats of American economic growth from President Donald Trump’s war. Two months after Trump’s presidency, the feelings in Wall Street turned from optimism to nervousness. Wall Street retreated with $ 5 trillion from US shares, where investors have reduced risks and transferred some money to markets in Europe and Asia.

“It is a very volatile environment and we expect this to continue in the foreseeable future,” Thomas Tao, head of the APAC investment strategy for Blackrock, told Bloomberg TV. He said the stock markets “like Europe and to some extent in China”, has emerged as convincing opportunities, as US shares fell from record levels.

The last fainting in the United States is a technical correction and not the beginning of the new bear market, as it is likely that it is likely to call for politics, according to Michael Hartnett of Bank of America.

S&P 500 has decreased by 10 % in a correction area since the February Summit. The bear market is defined as a 20 % decrease from the highest modern level.

BOFA expert, who preferred international stocks over the United States this year, recommended the purchase of the S&P 500 index at 5300 points, a decrease of 4 % of the current levels, once external flows accelerate, the cash levels of the fund managers rise 4 % and spread the high return 400 basis points.

“We say this is a correction, not the bear market in American stocks,” Hartnett wrote in a note. “Since stocks threaten stagnation, the new declines in stock prices will provoke the face in commercial and monetary policy.”

Democrats and Republicans in Congress in a high -risk chicken game have been involved because Democrats insisted that the spending package includes some restrictions on an ELON Musk Crusade of the cost, as Republicans and the bold opposition refuse to risk on charges of closure. The Democratic Leader of the Senate, Chuck Schumer, has threatened to prevent the Republican spending bill, and to open the way to avoid the closure of the US government.

Traders also follow the risk of ceasefire in Ukraine. Russian President Vladimir Putin said he wanted to discuss the proposed ceasefire with Trump, although he warned that any truce should lead to a long -term solution to war. At the same time, the United States is tightening sanctions on Russia by restricting energy payments even while following peace talks.

Meanwhile, investors are the most optimistic of treasury bonds for stocks for at least three years, threatening TROMP tariff policies by ending the U.S. exceptional era.

In Asia, consumption shares pushed Chinese stocks upward on the hopes of politics, while bank shares have advanced as investors were placed in a possible position in the requirements of the reserve ratio, which would free more money for lending. CK Hutchison Holdings Ltd. Friday, after the Chinese office, which deals with Hong Kong, re -attacked a sharp replacement of the cluster decision to recover Trump by selling its share in Panama’s ports.

Elsewhere, oil advanced as the United States tightened the sanctions and gold circulating at a cover of $ 3,000.

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