US equity futures rose while Treasury yields and a gauge of dollar strength were little changed after President Joe Biden and House Speaker Kevin McCarthy said they had a productive talk on the debt ceiling. Oil also rose on improved risk appetite while gold’s allure as a haven waned, pushing the precious metal toward the lowest level since the end of March. Jitters struck stock indexes in Asia, with benchmarks in Hong Kong and Tokyo erasing earlier gains. While Biden said he and McCarthy agreed that default was off the table, investors are on tenterhooks with the clock ticking to June 1, when Treasury Secretary Janet Yellen has advised her department may run out of cash. Any agreement would have to be approved by Congress before then and in the meantime investors have jacked up the premium they demand to hold US paper that’s most at risk. The cost of insuring the nation’s sovereign debt against default with derivatives has also climbed. Contracts for the S&P 500 and the Nasdaq 100 increased about 0.2% and Euro Stoxx 50 futures rose marginally. Bitcoin ticked higher for the fourth time in five days. Yields on policy sensitive two-year Treasuries edged up less than one basis point to 4.32% after short-term rates rose Monday. Australian and New Zealand government bond yields followed the moves in Treasuries. The optimism that emerged from the debt talks also pushed yield premiums on Asia ex-Japan investment-grade dollar bonds lower as the spreads set for the tightest in more than two months. he moves Tuesday followed fluctuating fortunes in US markets on Monday, when the S&P 500 drifted between gains and losses before closing flat. The tech-heavy Nasdaq 100 advanced 0.3%, though chipmakers were under pressure after China said products by Micron Technology Inc. failed a cybersecurity review. In Asia, concern is growing about China’s tepid post-pandemic recovery, which is having a negative impact on key commodity prices such as iron ore and copper. Both have both tumbled in recent trading days Signs of a geopolitical thaw between the regional powerhouse and the US helped lift Hong Kong stocks more than 1% on Monday after Biden hinted about improving relations with Beijing. The rally fizzled on Tuesday. Adani Group shares rallied, extending gains spurred by an Indian court panel’s report that found no conclusive evidence of stock-price manipulation as alleged by US short seller Hindenburg Research. Meanwhile, the outlook for the Federal Reserve’s rate path is also on the minds of investors. St. Louis Fed President James Bullard said he’s thinking of two more rate hikes this year, while Minneapolis Fed President Neel Kashkari said if the US central bank pauses next month it should signal tightening isn’t over. US After Hours CSWC +3.1%, NDSN +1.7%, ZM +0.7% up on earnings; GH -7.1% down after filing stock offerings; RNR -3.7% lower after agreeing to acquire AIG's treaty reinsurance business.
Nikkei -0,39% Hang Seng -0,66% CSI -0,86% Shanghai -1,01% Shenzen -0,41%
Eur$ 1,0808 CNH 7,0575 CNY 7,0479 JPY 138,55 GBP 1,2434 CHF 0,8984 RUB 80,1198 TRY 19,8364 WTI$ 72,31 +0,38% Gold 1,962,80 BTC 27,413 +2% ETH 1,863 +2,3%
S&P +0,13% Nasdaq +0,19% EuroStoxx +0,02% FTSE -0,04% Dax -0,02% SMI -0,15%
Macro :
- Citi Strategists Hail ‘Return of Bullish Flows’ to US Equities
- ESG ETF 2023 Expectations? US Weakness, Liquidation Risks
Keep an eye on :
- AVON LN : Avon Protection 1H Revenue $116.2M
- BORR NO : Borr Drilling 1Q Adjusted Ebitda Misses Estimates
- BWLPG NO : BW LPG 1Q Ebitda Beats Estimates
- BYG LN : Big Yellow Group FY Revenue Meets Estimates
- CSGN SW : CDS Panel Rules Credit Suisse Takeover Not a Bankruptcy Event
- DIS US : Disney Begins Third Round of Expected Layoffs, CNN Says
- ENEL IM : Enel North America to Invest >$1b In US Solar Plant (May 22)
- ENT LN : New Zealand Approves 25-Year Partnership Between TAB, Entain
- GGAA US : NextTrip to Go Public in Merger With Genesis Growth Tech SPAC
- HEXAB SS : Hexagon CEO Sees More Opportunities to Scale Up Company: DI
- INDV LN : Opiant Pharma Gets FDA Approval for Opvee NDA
- BAER SW : Julius Baer Assets Under Management CHF429B, Sees Hiring Pickup Amid Uncertainty
- JUVE IM : Juventus Set to Miss Champions League After Court Issues Penalty
- MUL LN : Mike Ashley launches boardroom raid at Mulberry
- NEOEN FP : Neoen, Prokon to Build Finland Wind Farms Totalling 161.2 MW
- NESN SW : Nestle Executive Vice President Magdi Batato to Retire in 2024
- NOVOB DC : Pfizer Shares Rise Following CNBC Report on Weight-Loss Pill
- PFE US : Pfizer Shares Rise Following CNBC Report on Weight-Loss Pill
- PSM GY : ProSiebenSat.1, Sky Revive Talks Over TV Tie-Up in Germany: Rtrs
- SDRL NO : Seadrill Sees FY Adjusted Ebitda $435M to $485M
- GLE FP : SocGen Investors Eye Potential Stock Revival as Krupa Takes Helm
- SPSN SW : Swiss Prime Plans to Issue CHF250M Convertible Notes Due 2030
- TGNA US : Standard General’s Tegna Takeover Dies After Money Goes
- TTE FP : Total’s Mozambique LNG Revival Would Risk $4.7 Billion Loan
- TSN US : Tyson Foods Closes Purchase of Williams Sausage Company
- UBSG SW : UBS Suspends Work on China Mutual-Fund Project: Nikkei
- UPONOR FH : Uponor’s Board Rejects Public Offer From Aliaxis
- XBRANE SS : Xbrane Biopharma Offers SEK100 million Shares