"U.S. shutdown lift would benefit risk assets"

An analysis said that if the U.S. government shutdown is lifted and government spending resumes, risk assets would benefit.

On the 8th (local time), Negentropic, the X account of Glassnode co-founders Jan Happel and Yann Allemann, analyzed, "The U.S. Treasury General Account (TGA) has accumulated excessively, exceeding its target due to the effects of the shutdown, which has temporarily reduced market liquidity. As a result, risk assets across the board are undergoing a temporary correction."

They added, "If the shutdown is lifted, government spending will be released again, shrinking the TGA, which is likely to lead to increased liquidity in the market. In addition, the Federal Reserve (Fed) ending quantitative tightening (QT) in December and the possibility of rate cuts are cited as additional factors for a liquidity shift. If liquidity returns, risk assets are likely to regain upward momentum."