Market Mania: Stocks Soar Amid Washington Gridlock

As European and global markets forge ahead, political gridlock in Washington shows no signs of resolution, yet stocks and gold are reaching unprecedented levels. Investors are honing in on the Federal Reserve's potential rate cuts, buoying market optimism.

Despite risks from a prolonged U.S. government shutdown, markets remain largely unfazed, adopting a risk-on stance. With manufacturing data from Europe in the spotlight, traders are keenly observing any tariff impacts, but initial data reflects little disruption.

Across the pond, manufacturing activities showed slight improvement, although new orders and employment figures showed weaknesses due to tariff repercussions. The global stock surge is driven by the sustained AI interest and the anticipation of Fed rate reductions as private reports hint at a sluggish labor market.

(With inputs from agencies.)