Global stock markets showed mixed reactions on Thursday, with Wall Street and major European indices slipping even after US President Donald Trump signed a bill to end the record-long government shutdown.
Global stock markets remained subdued on Thursday following the end of the United States' record 43-day government shutdown. Despite relief that Washington has finally passed a spending bill, investor sentiment cooled as traders reassessed the sustainability of recent rallies.
In early Wall Street trading, the tech-heavy Nasdaq dropped over 1%, weighed down by a 2.8% decline in chipmaker Nvidia, while the Dow Jones Industrial Average and the S&P 500 both slipped around 0.5%. European markets followed suit, with London and Frankfurt down close to 1%, though Paris bucked the trend with a 0.4% gain.
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Analysts noted that the market may have reached a temporary peak. “While it’s unclear whether the shutdown was ever a real drag on equities, the question now is whether the market’s recent exuberance has run its course,” said Fawad Razaqzada of StoneX.
London stocks also faced pressure after data showed the UK economy slowed in the third quarter, dealing a blow to the Labour government ahead of its upcoming budget. Burberry shares initially rose 5% on the FTSE 100 after narrowing first-half losses through cost-cutting, before retreating later in the session.
Across Asia, markets delivered a mixed performance, with Tokyo, Hong Kong, Shanghai, and Mumbai posting gains, while Sydney, Wellington, and Taipei edged lower. Japan’s yen weakened further after the finance minister said authorities were monitoring currency movements closely.
Investors are now waiting for key US economic data delayed by the shutdown, including jobs and inflation figures for October. The White House indicated those reports may be incomplete due to disrupted data collection during the closure.
Meanwhile, concerns are rising over an overheated AI-driven rally, with analysts warning that tech valuations could be heading toward a bubble. Oil prices rebounded by about 1% after a sharp plunge the previous day, with OPEC’s latest report predicting an oversupply later this year.
The International Energy Agency has forecast a record oil surplus for 2026, adding to the cautious tone in commodities.
The European and US stock markets struggled to maintain momentum after the reopening of the US government, which ended a record 43-day shutdown. While some investors expected a rebound, major indices instead turned lower, reflecting caution over the broader economic outlook.
On Wall Street, the Nasdaq Composite fell 1.1% to 23,145.50, the S&P 500 lost 0.7% to 6,805.78, and the Dow dipped 0.3% to 48,119.57. London’s FTSE 100 declined 0.8% to 9,835.51, while Frankfurt’s DAX slipped 0.7%. Paris’ CAC 40 rose 0.4%, supported by strong corporate performances.
In Asia, the Nikkei 225 added 0.4% to 51,281.83, while Hong Kong’s Hang Seng Index climbed 0.6% to 27,073.03. The Shanghai Composite gained 0.7% to 4,029.50.
The US dollar fell slightly against the yen to 154.66, while the euro and the pound strengthened modestly against the dollar. Brent crude rose 1% to $63.34 a barrel, and West Texas Intermediate advanced 1% to $59.08.
With investors digesting the implications of the shutdown’s end and looking ahead to delayed economic data, analysts warned that markets may experience further volatility in the coming weeks, particularly amid uncertainty over interest rate decisions and AI-driven valuations.
Published: 13 Nov 2025, 08:53 pm IST
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