Jefferies: U.S. government reactivation expected, easing market risk pressure

Jin10 Data, November 11th: J.P. Morgan Global Economist Mohit Kumar stated that the prospects of the U.S. government reopening will eliminate several risks in the market, which should boost risk assets. “With the Senate passing a stopgap spending bill, a government shutdown is likely to end this week,” Kumar noted in the report. He believes that the completion of position clearing will remove one of the obstacles for risk assets, but uncertainty around Federal Reserve policies still remains. If subsequent data is insufficient to demonstrate a softening labor market, the Fed may delay a rate cut in December. According to data from the London Stock Exchange Group, the current probability of the Federal Reserve cutting interest rates by 25 basis points in December is 64%.