Global risk appetite surged after the U.S. government shutdown officially ended — a major de-risking catalyst that sent futures and equities higher worldwide. While the reopening eased short-term political risk, it also revived questions about the Federal Reserve’s policy path, keeping rate uncertainty, sector rotation and volatility in play.

Nasdaq futures were mixed but trending positively, as investors considered post-shutdown optimism against the backdrop of high valuations in large-cap AI and tech stocks. Nvidia remains the focal point ahead of its Q3 earnings on 19 November, with markets positioning themselves for any guidance that could reshape the outlook for AI capital expenditure. Meanwhile, rotation into cyclicals, banks and industrials indicated improving market breadth, as traders reduced their exposure to high-multiple tech stocks.

The DAX maintained recent gains, supported by steady German inflation data and resilient corporate results, despite weak domestic growth. Optimism about the U.S. reopening lifted European sentiment, particularly among financial and industrial stocks.

Japan’s Nikkei index continued to rise in line with the global risk-on mood, with value and cyclical stocks leading the way. A weaker yen continued to benefit exporters, while traders monitored JGB yields and Bank of Japan commentary for clues as to the impact on financial performance.