(REUTERS) — Stock markets worldwide climbed on Tuesday while safe-haven gold and Treasury bonds fell as investors largely shrugged off the first partial shutdown of the U.S. government in 17 years on bets that it will be short-lived.
Congress missed a midnight deadline to agree on a spending bill, resulting in up to 1 million federal workers being put on unpaid leave. The White House rejected a Republican plan to reopen portions of the U.S. government, offering no sign of an end to the bipartisan fight centered on President Barack Obama’s healthcare law.
Equities had fallen ahead of the shutdown, and some market participants view any pullback as a buying opportunity. Previous shutdowns have not had much of an impact on portfolios.
MSCI’s world equity index .MIWD00000PUS, which tracks shares in 45 countries, rose 0.6 percent to 384.31; it has fallen 1.5 percent since its recent high on September 19.
“If this is short like most of them have been, it won’t really change much as far as the fundamentals. Thus we are still pretty bullish on U.S. stocks,” said Mike Serio, regional chief investment officer for Wells Fargo Private Bank in Denver. “However, if this does go on for a long time, we may have to go back and revisit our GDP growth number at some point.”