Global Markets Mixed as U.S. Shutdown Continues and Japan Sees Political Shift
- Rahaman Hadisur
- Oct 7
- 2 min read
Hadisur Rahman, JadeTimes Staff
H. Rahman is a Jadetimes news reporter covering the Asia
Wall Street looked set for modest gains on Monday as the U.S. government shutdown entered its second week, while markets in Japan and France reacted sharply to political upheavals.
Futures for the S&P 500 rose 0.3%, the Dow Jones Industrial Average gained 0.2%, and Nasdaq futures climbed 0.7%. Investors weighed the impact of limited economic data releases this week due to the shutdown, with earnings reports from Delta Air Lines, PepsiCo and Levi Strauss expected to draw attention. The Federal Reserve will still publish minutes from its most recent policy meeting.
Corporate news drove major stock movements before the opening bell. Fifth Third Bancorp announced a $10.9 billion all-stock acquisition of Comerica, creating the ninth-largest U.S. bank. Comerica shares surged nearly 11%, while Fifth Third fell almost 5%. Semiconductor giant Advanced Micro Devices soared more than 27% after unveiling a deal to supply chips to OpenAI for artificial intelligence infrastructure.
Overseas, political developments unsettled European markets. France’s CAC 40 dropped nearly 2% after Prime Minister Sébastien Lecornu resigned just one day after forming a government, deepening uncertainty in President Emmanuel Macron’s administration. Germany’s DAX edged up 0.3% while Britain’s FTSE 100 gained 0.2%.
In Japan, the Nikkei 225 jumped 4.8% to a record close after Sanae Takaichi, a conservative ally of the late Prime Minister Shinzo Abe, was chosen as leader of the ruling Liberal Democratic Party, paving the way for her to become Japan’s first female prime minister. The yen weakened as investors anticipated increased government spending. Defense stocks rallied, with Mitsubishi Heavy Industries climbing 11.1% and Kawasaki Heavy Industries rising 9.2%.
Elsewhere in Asia, Hong Kong’s Hang Seng index slipped 0.7%, while markets in China, Taiwan, and South Korea were closed for holidays.
In energy trading, U.S. crude rose 51 cents to $61.39 a barrel, while Brent crude added 59 cents to $65.12, following OPEC+’s decision to slightly boost production.
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