Oil Extends Losses, Stocks Hold Three-Day Gain: Markets Wrap
(Bloomberg) — Oil extended its drop after slumping the most since June as OPEC said crude supplies surpassed demand sooner than anticipated.
Global benchmark Brent fell toward $62 a barrel after losing almost 4% in the previous session, while West Texas Intermediate was near $58. Energy stocks in Australia declined. Global shares held a three-day gain that took them to within touching distance of a record high as the US House passed a bill to end the longest-ever government shutdown. The S&P 500 Index has risen for four successive days as optimism built over a resolution to the shutdown.
A gauge of Asian shares was flat, with Japanese indexes advancing amid a weaker yen. The currency has been the focus of investors after the country’s Finance Minister Satsuki Katayama issued a fresh warning on currency movements. The yen hovered around the key threshold of 155 per dollar, inching closer to levels where authorities last intervened in markets.
With US earnings season nearing completion, markets are shifting focus to the Federal Reserve and the outlook for potential interest-rate cuts. The absence of key indicators — such as unemployment figures and October’s consumer price index — has fueled uncertainty around monetary policy, with the White House confirming those reports are unlikely to be released due to the shutdown.
“While the markets are pricing the end of the government shutdown, there is an even bigger mountain ahead of us, and that is the resumption of all of the economic data that we have missed,” said Michael Landsberg at Landsberg Bennett Private Wealth Management. “As the fog lifts, we will see if market positioning has been correct and it is still clear sailing or if there is a big repricing necessary.”
A six-week clash between President Donald Trump and congressional Democrats that disrupted flights across the country and delayed food aid for millions is set to end within hours after the House passed a temporary funding bill.
The House voted 222 to 209 Wednesday evening to pass the interim funding, although fully restarting the federal bureaucracy after the longest US government shutdown in history could still take days.
Trump is expected to sign the bill Wednesday night in Washington to help reopen the government.
With the government shutdown delaying key economic data, the real challenge isn’t the short-term drag on growth — it’s the increasing difficulty for investors and the Fed to gauge the economic outlook, noted Seema Shah at Principal Asset Management.
“As data releases resume, the case for a Fed rate cut in December should re-emerge, reinforcing a risk-on backdrop,” she said. “This environment favors US equities, particularly Big Tech and cyclicals poised to benefit from a more accommodative Fed stance.”
Still, Boston Fed President Susan Collins said she favored holding rates steady amid still-strong growth that could slow or stall progress on cooling inflation.
The Boston Fed chief, who votes on policy this year, said last month’s rate cut — the second in a row — was “prudent” in order to support a labor market where hiring has weakened. She said the Fed’s policy rate, currently in a range of 3.75% to 4%, remains “mildly restrictive,” which is appropriate given that inflation remains above the Fed’s 2% target.
Elsewhere, Australia’s stocks extended declines and shorter yields jumped after stronger-than-estimated jobs data damped expectations for rate cuts from the Reserve Bank.
Corporate News:
Cisco Systems Inc. shares gained in late trading after the network-equipment giant boosted its 2026 forecast, showing progress in its effort to capture more artificial intelligence spending. Toyota Motor Corp. confirmed it will plow as much as $10 billion into the US over the next five years to boost its local operations. Anthropic PBC plans to spend $50 billion to build custom data centers for artificial intelligence work in several US locations, including Texas and New York, the latest expensive pledge for infrastructure to support the AI boom. Volkswagen AG and Rivian Automotive Inc. have ambitions of selling the electric vehicle technology they’re developing together to other carmakers in the future. Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.1% as of 10:47 a.m. Tokyo time Japan’s Topix rose 0.7% Australia’s S&P/ASX 200 fell 1% Hong Kong’s Hang Seng was little changed The Shanghai Composite was little changed Euro Stoxx 50 futures rose 0.3% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1585 The Japanese yen was little changed at 154.90 per dollar The offshore yuan was little changed at 7.1148 per dollar Cryptocurrencies
Bitcoin rose 0.3% to $102,253.51 Ether rose 0.6% to $3,444.24 Bonds
The yield on 10-year Treasuries advanced two basis points to 4.09% Japan’s 10-year yield was unchanged at 1.685% Australia’s 10-year yield advanced seven basis points to 4.45% Commodities
West Texas Intermediate crude fell 0.3% to $58.29 a barrel Spot gold fell 0.3% to $4,182.57 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Toby Alder.
©2025 Bloomberg L.P.
