Latest version: May 26, 2023, 23:53 IST
New York, United States (USA)
On Thursday, US President Joe Biden expressed confidence in the talks, saying there would be no default and that recent talks had been fruitful. US President Joe Biden and top congressional Republican Kevin McCarthy appear to be closing in on a deal ahead of the June 1 deadline. That would raise the government’s debt ceiling by $31.4 trillion over two years.
Treasury yields rose as investors reconsidered how long interest rates could rise
Wall Street and European shares rose on Friday as the White House and congressional Republicans worked on the final touches on a US debt ceiling deal.
Treasury yields rose as investors reconsidered how long interest rates could rise. [US/]
The MSCI World Equity Index, which tracks shares in 49 countries, was up 1% by 10:38 a.m. EDT (1438 GMT), but was still on track for weekly losses.
The index extended gains after US data showed stronger-than-expected consumer spending in April.
US President Joe Biden and top congressional Republican Kevin McCarthy appeared to have reached a deal ahead of a June 1 deadline that would raise the government’s $31.4 trillion debt limit for two years while capping spending on most items.
The dollar eased against a basket of currencies, but markets are on track for a third straight weekly gain as bets on long-term interest rates. [FRX/]
Gold rose from a two-month low as oil prices rose, helping the greenback slide.
Euro zone government bond yields are headed for a weekly rise as strong economic data and dovish comments from central bank officials triggered some upward revaluation of market bets on euro zone interest rates.
“This week was a bit of a wake-up call for rate expectations. There is a perception that inflation is going to stabilize for a long time,” said Mike Hewson, chief market strategist at CMC Markets.
The Dow Jones Industrial Average added 354.75 points, or 1.08%, to 33,119.74, the S&P 500 gained 47.46 points, or 1.12%, to 4,197.73 and the Nasdaq Composite gained 200.84 points, or 1.57%, to 12,897.35.
Strong U.S. consumer spending data boosted economic prospects for the second quarter and inflation picked up, the Commerce Department said Friday.
The STOXX 600 index of 600 European companies rose 0.8%, while Europe’s broader FTSEurofirst 300 index added 1.20%.
Chipmaker Marvell Technology Inc soared nearly 28% after forecasting its annual artificial-intelligence (AI) revenue would double.
Shares of Nvidia Corp., the world’s most valuable chipmaker, added 1.81% after vaulting to a record high on Thursday following a bumper forecast.
The yield on the benchmark 10-year Treasury note rose to 3.8274% and the two-year yield, which has risen on traders’ expectations of a higher Fed funds rate, rose to 4.5723%.
China’s recovery is questionable
In Asia, Japan’s Nikkei rose 0.4% with revenue and production upgrades for Nvidia boosting exposure to Japanese firms. [.T]
The cost of insuring exposure to US government debt fell on Friday.
China’s yuan slipped along with Chinese stocks as expectations for a glimmering post-pandemic recovery fell, sending steel prices in China to three-year lows.
“US debt issues aren’t the only ‘ceiling’ we’re dealing with, as slowing Chinese economic data suggests a ceiling to growth may also be in the works,” said RBC technical strategist George Davis.
US crude rose 1.04% to $72.62 a barrel. Brent crude rose to $76.88 a barrel.
Spot gold rose 0.15% to $1,943.19 an ounce.
(This story has not been edited by News18 staff and appears from a syndicated news agency feed – Reuters)
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