Oil prices climbed in early Monday trading as optimism grew over progress toward ending the U.S. government shutdown. Brent crude rose 0.4% to $63.88 a barrel, while West Texas Intermediate (WTI) gained 0.6% to $60.11. The potential reopening of the U.S. government—the world’s largest oil consumer—is expected to improve market sentiment and support demand. Traders are also watching closely for this week’s key industry reports from OPEC, the International Energy Agency (IEA), and the U.S. Energy Information Administration (EIA) for insights on global supply-demand trends.

Meanwhile, reports suggest President Trump has granted Hungary a one-year exemption to continue buying Russian energy, drawing investor attention to shifting trade flows under recent U.S. sanctions.

Bond markets also reacted to the U.S. developments. U.K. gilt yields rose in line with U.S. Treasury yields as investors priced in the potential resolution of the shutdown. The 10-year U.K. gilt yield climbed 2.2 basis points to 4.484%, while the 10-year U.S. Treasury yield advanced 4.6 basis points to 4.138%. Analysts expect bond market volatility to persist in the near term as investors await more clarity on fiscal and monetary policy.

In currency markets, the British pound remained steady at $1.3157, but analysts at ING warned that weaker U.K. wage growth data due Tuesday could push sterling lower and strengthen the case for a December rate cut by the Bank of England. The euro edged 0.1% higher to 0.8792 pounds, with expectations it may soon rise above 0.88.

In Asia, China’s latest inflation data signaled early signs of recovery, but domestic demand indicators remained weak. Barclays economists noted that while October’s CPI and PPI improved, slowing auto sales and a declining property market continued to weigh on the economy. New-property sales in major cities fell, and rental prices dropped sharply, underscoring continued real estate stress.

Elsewhere, the Philippines’ fourth-quarter growth is expected to rebound, supported by remittance inflows and post-storm recovery. Fitch Solutions’ BMI forecasts 2025 GDP growth at 4.9%, though warns of tariff-related headwinds.

In the crypto market, Bitcoin rose 1.8% to $106,399, supported by improved risk sentiment from the likely end of the U.S. government shutdown. Analysts said the reopening of the government would restore the release of key economic data, which could influence the Federal Reserve’s December rate decision.

Overall, optimism over a U.S. government reopening lifted risk assets globally, though analysts cautioned that uncertainty over long-term fiscal policy, interest rates, and bond supply pressures could keep markets volatile in the weeks ahead.