Global Stocks Surge as US Shutdown Risk Eases

Treasuries gave back some gains from previous session, when investors dashed to haven assets that lifted gold to a record high

- BLOOMBERG

Global stocks rose Friday as the threat of a US government shutdown receded and expectations grew that China will unveil sweeping measures to boost consumer demand.

S&P 500 contracts rose 0.8 percent as a stopgap funding Bill looked set to pass in Congress after Senate Democratic leader Chuck Schumer opted not to block the measure. That's helped lift the mood after the benchmark index extended its three-week rout beyond 10 percent on Thursday, the technical threshold for a correction. Futures on the Nasdaq 100 gained 1 percent.

"It looks like the Budget Bill is still going through despite some opposition from Democrats and this has lifted sentiment in the US and probably there is also some spillover effect to Europe," Julius Baer & Co. economist Sophie Altermatt said.

"This might be just some reprieve, given we had so many uncertainties with erratic policy moves in the US," she added.