Jornal Do Brasilia - Stocks sluggish as US government shutdown ends

In early trading on Wall Street, the tech heavy Nasdaq lost more than one percent with chip giant Nvidia notably shedding 2.8 percent while the Dow and the S&P 500 were also in the red by around half of one percent.

London and Frankfurt also lost close on one percent as Europe crawled towards the European close with Paris a rare beam of light, adding 0.4 percent two hours from the closing bell.

"While it's unclear whether the (US) shutdown was ever a real drag on equities -– given that stocks largely rallied through it -– the question now is whether the market's recent exuberance has run its course," said Fawad Razaqzada, market analyst at StoneX.

Wall Street stocks had closed mostly higher Wednesday, the Dow climbing to a fresh record amid speculation that traders are shifting from tech into industrials.

London fell after data showed the UK economy slowed in the third quarter, dealing another blow to the Labour government ahead of its annual budget this month.

Shares in luxury fashion label Burberry jumped around five percent on London's top-tier FTSE 100 index before slipping back after the British group narrowed first half losses thanks to sizeable cost-cutting.

In Asia, Tokyo, Hong Kong, Shanghai, Seoul, Singapore, Mumbai, Manila, Bangkok and Jakarta all rose. Sydney, Wellington and Taipei fell.

- AI sector concerns -

Lawmakers in Washington voted on Wednesday to end the 43-day stoppage that closed key services and suspended the release of data crucial to gauging the state of the world's top economy.

Investors are bracing for long-awaited reports that have been held up by the closure, particularly as the Federal Reserve assesses whether to cut rates next months, as is expected.

However, the White House said figures on jobs and consumer prices for October were not likely to be released as statistics agencies were unable to collect the necessary data.

Concerns also mount that this year's AI-led market rally may have pushed valuations too high and led to a bubble in the tech sector that could burst at any time.

Attention was earlier on Tokyo after Japanese Finance Minister Satsuki Katayama said the government was keeping an eye on currency markets as the yen weakened afresh.

The yen came under pressure following dovish comments from Japan's central bank that tempered bets on another interest rate hike and as the United States moved towards reopening its government.

Oil prices advanced after plunging around four percent on Wednesday as OPEC's monthly crude market report forecast an oversupply in the third quarter.

That came just a month after it had predicted a deficit in the period.

The commodity has come under pressure from easing tensions in the Middle East and increased output by OPEC and other key producers.

The International Energy Agency has estimated a record surplus in 2026.

- Key figures at around 1445 GMT -

New York - Dow: DOWN 0.3 percent at 48,119.57 points

New York - S&P 500: DOWN 0.7 percent at 6,805.78

New York - Nasdaq Composite: DOWN 1.1 percent at 23,145.50

London - FTSE 100: DOWN 0.8 percent at 9,835.51

Paris - CAC 40: UP 0.4 percent at 8,274.47

Frankfurt - DAX: DOWN 0.7 percent at 24,215.79

Tokyo - Nikkei 225: UP 0.4 percent at 51,281.83 (close)

Hong Kong - Hang Seng Index: UP 0.6 percent at 27,073.03 (close)

Shanghai - Composite: UP 0.7 percent at 4,029.50 (close)

New York - Dow: UP 0.7 percent at 48,254.82 (close)

Dollar/yen: DOWN at 154.66 yen from 154.80 yen on Wednesday

Euro/dollar: UP at $1.1620 from $1.1587

Pound/dollar: UP at $1.3170 from $1.3129

Euro/pound: DOWN at 88.23 pence from 88.25 pence

Brent North Sea Crude: UP 1.0 percent at $63.34 per barrel

West Texas Intermediate: UP 1.0 percent at $59.08 per barrel

A. Martins--JDB