US and European equity futures delivered small advances while a gauge of Asian shares climbed about 0.5% as global markets greeted the US debt-ceiling deal between President Joe Biden and House Speaker Kevin McCarthy with cautious optimism. Investors had already become increasingly confident on Friday that an agreement would be struck in Washington, reducing the strength of moves Monday. Assuming the deal passes Congress, which can’t be taken for granted, traders still have much to contend with — from the prospect of another interest-rate hike from the Federal Reserve to a likely deluge of bond issuance from the US Treasury Department. Contracts for the S&P 500 steadied about 0.3% higher around lunchtime in key Asia markets while those for the Nasdaq 100 were up 0.4%. While gains of around 1% were seen in Japanese and Australian stocks benchmarks, Chinese shares traded in Hong Kong erased an initial burst higher. They’re inching toward a bear market as the economic recovery wobbles, geopolitical tensions worsen and a weaker yuan keeps investors away. Gold was flat on waning demand for havens as oil and Bitcoin climbed, reflecting a modestly buoyant tone. Credit spreads for higher-rated Asian debt also narrowed Monday, extending a rally that was seen in the previous three weeks. An index of dollar strength was little changed, having reached a two-month high earlier last week. The greenback traded in tight ranges of less than 0.2% versus most of its major counterparts. Treasury futures fell slightly, in the absence of cash trading with US markets closed Monday for a holiday, along with the UK and some parts of Europe. Traders were demanding less of a premium to hold US Treasury bills on Friday that were seen most at risk of nonpayment if a deal isn’t reached in time. The agreement struck by Biden and McCarthy is running against the clock given that June 5 is the date when Treasury Secretary Janet Yellen has said cash will run out. There is plenty in the deal that Democrats and Republicans won’t like. In stocks Friday, the S&P 500 rose 1.3% and the tech-heavy Nasdaq 100 added 2.6% as Marvell Technology Inc. said 2024 revenues would “at least double” from a year ago on a surge in demand from AI, echoing sentiments from rival chipmaker Nvidia Corp. earlier in the week. Elsewhere, there will be heightened interest in emerging markets after Turkish President Recep Tayyip Erdogan sealed an election victory, raising the prospect of more friction with Western governments and more uncertainty for investors.
Nikkei +1.18% Hang Seng -0.92% CSI -0.68% Shanghai +0.15% Shenzen -0.69%
Eur$ 1.0734 CNH 7.0711 CNY 7.0671 JPY 140.44 +0.12% GBP 1.2355 +0.09% CHF 0.9050 RUB 79.3744 TRY 20.0152 WTI$ 73.27 +0.83% Gold 1,946 -- BTC 27,944 +1.38% ETH 1,900 +2.46%
S&P +0.30% Nasdaq +0.49% EuroStoxx +0.16% FTSE Close Dax +0.16% SMI Close
Macro :
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- IMF Urges US to Raise or Suspend Debt Cap, Sees Higher Fed Rates
- The AI Stock Frenzy Stands to Boost the Dollar, Barclays Says
- Watch Spanish Stocks After Socalists Lose Control of Key Regions
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- 1913 HK : +2.1% in HK
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- SUSE GY : SUSE Surges on Report Buyout Firms Remain Interested in Bid
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- WTB LN : Whitbread Considers Selling its Beefeater Chain: Telegraph