Last Update: May 26, 2023, 23:53 IST
New York, United States (USA)
On Thursday US President Joe Biden expressed confidence about the talks, saying there would be no default and that recent talks have been productive. This would extend the government’s $31.4 trillion debt limit for two years.
Treasury yields rose as investors reconsidered how long interest rate hikes are likely to continue
Wall Street and European stocks rose on Friday as the White House and congressional Republicans finalized a US debt ceiling deal.
Treasury yields rose as investors again wondered how long interest rate hikes were likely to continue. [US/]
The MSCI World Equity Index, which tracks stocks in 49 countries, rose 1% as of 10:38 a.m. EDT (1438 GMT) but was still on track for a weekly loss.
The index rose after US data showed stronger-than-expected consumer spending in April.
US President Joe Biden and top congressional Republican Kevin McCarthy appeared to reach an agreement ahead of a June 1 deadline that would extend the government’s $31.4 trillion debt limit for two years while slashing spending on most items.
The dollar declined against a basket of currencies but remained on track for a third consecutive weekly gain as markets bet on higher long-term interest rates. [FRX/]
A fall in the greenback pushed gold above two-month lows, led by a rise in oil prices.
Euro zone government bond yields rose for the week on strong economic data and dovish comments from central bank officials.
“This week has been a bit of a wake-up call on expectations. Mike Hewson, chief market strategist at CMC Markets, said there is a feeling that inflation is going to be stable for a very long time.
The Dow Jones Industrial Average rose 354.75 points, or 1.08%, to 33,119.74, the S&P 500 rose 47.46 points, or 1.12%, to 4,197.73 and the Nasdaq Composite rose 200.84 points, or 1.57%, to 12,897.35.
The Commerce Department said on Friday that strong US consumer spending data boosted the economy’s prospects for the second quarter and raised inflation.
The STOXX 600 index of 600 European companies rose 0.8%, while Europe’s broader FTSEurofirst 300 index rose 1.20%.
Chipmaker Marvell Technology Inc soared nearly 28% after forecasting to double its annual artificial-intelligence (AI) revenue.
Shares of Nvidia Corp, the world’s most valuable chipmaker, rose 1.81% after hitting a record high on Thursday following a bumper forecast.
The yield on benchmark 10-year Treasury notes rose to 3.8274% and the two-year yield, which tends to rise with traders’ expectations of higher Fed funds rates, climbed to 4.5723%.
China’s recovery questioned
In Asia, Japan’s Nikkei rose 0.4% as revenue and production upgrades for Nvidia added to risk exposure to Japanese firms. [.T]
The cost of insurance risk for US government debt eased on Friday.
China’s yuan slipped along with Chinese shares as a glimmer of hope for a speedy post-pandemic recovery pushed steel prices in China to a three-year low.
“US debt issues are not the only ‘ceiling’ we’re dealing with, as slowing Chinese economic data suggest there could also be a ceiling to growth,” said RBC technical strategist George Davies.
US crude climbed 1.04% to $72.62 a barrel. Brent crude rose to $76.88 per barrel.
Spot gold rose 0.15% to $1,943.19 an ounce.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,
