Despite the expected thin trading volumes on Monday due to Labour Day in parts of Europe and Asia, global stock markets traded slightly higher on Monday morning. Japan’s Nikkei 225 raded up 0.4 percent in early trade while MSCI’s broadest index of Asia-Pacific shares outside Japan had little movement. Traders were encouraged by the ability of U.S. congressmen to negotiate a spending agreement for the country’s government that will be in place until September 30. The deal prevented a U.S. government shutdown which would have brought mayhem to the global marketplace.
The deal, confirmed on Sunday but still waiting for an official vote, negates many of President Trump’s campaign promises, and calls into question his efficiency as a leader. The budget will not include funding for a border wall with Mexico, and it will increase funding for the National Institute of Health, though Trump had requested a decrease in funding for the rest of the year. The deal also offers lifetime health coverage for retired coal miners, a hot-button issue that nearly caused a government shutdown in December 2016.
China’s official manufacturing survey was released yesterday to show that the country’s factories slowed more than expected in April though this data did little to swing markets downward.
The U.S. dollar gained slightly against the safe-haven yen on Monday, trading at 111.670 while the euro traded flat at $1.0894. Gold prices were also down on Monday, trading 0.31 percent lower at 6:18 a.m. GMT, to $1264.40.