Headline: Markets Stabilize as Shutdown Risks Recede; Gold Breaks $4,050 and LNG Deals Jump
Risk sentiment improved to start the week as signs of progress in Washington reduced the threat of a U.S. government shutdown. Equity futures edged higher despite a cautious tone around technology stocks and a month that opened on its weakest footing since April. Reports suggest enough votes in the Senate to support a negotiated deal, helping calm nerves across risk assets.
Safe-haven demand remained evident as gold vaulted above $4,050, underscoring persistent macro uncertainty. In energy, U.S. LNG exports continued to gain traction, with new contracts reportedly quadrupling year-to-date. Developers are seeking roughly 15% higher fees to offset rising costs, and buyers appear willing to pay for energy security and reliable supply.
Policy signals and logistics also shaped the outlook. The Bank of Japan’s October summary reinforced expectations that a rate hike could come in early 2026 if wage growth persists, with officials emphasizing a measured approach to ensure inflation is anchored by pay increases. In Japan, the new government is reviewing a future-facing fiscal target alongside plans for added stimulus. Meanwhile, the FAA ordered ground delays affecting key airports including Newark, LaGuardia, and Detroit, generating more than 50% delays at those hubs and over 2,200 flight cancellations on Sunday.
Key Points: – U.S. government shutdown fears eased as Senate support for a negotiated deal firmed. – Gold surged above $4,050 amid ongoing macro uncertainty. – U.S. stock futures rose, though tech caution lingered after the weakest month open since April. – U.S. LNG export activity accelerated, with new deals quadrupling year-to-date and higher developer fees. – BOJ signals a potential rate hike in early 2026 if wage gains sustain inflation. – FAA ground delays caused major disruptions at several U.S. airports, with thousands of flights canceled.
