Kevin Buckland looks ahead to European and global markets
European stocks are poised to rally after Wall Street and Asian stocks rose on growing optimism that a US debt ceiling deal could be reached as early as the weekend It seems
Investors focused on a deal between President Joe Biden and Republican top Kevin McCarthy to negotiate a deal directly, with Biden cutting back on a trip to Asia and returning to talks on Sunday.
Analysts stressed that both sides had agreed to a new, smaller team to continue negotiations, which they took as a sign that discussions had moved to a higher stage.
So there is still work to be done, and the story still has room for a twist before the Treasury runs dry on June 1st and triggers a disastrous first-ever default.
The air in some stock markets, especially in Japan, may be thinning. After surpassing 30,000 yen for the first time in 20 months on the previous day, the Nikkei Stock Average approached within 130 points of the highest price since 1990, which dates back to the era of the “bubble economy.”
The Nasdaq is at a 13-month high and the Ducks is hovering near its highest since January last year.
May is traditionally a selling month, but with US default schedules delaying the start of traders’ summer vacations, multiple analysts still expect a correction, but probably not until June. right.
Europe’s data shelves are now all but empty, meaning the next macro focus will be on several US indicators, including the Philadelphia Fed survey, unemployment claims, and existing home sales.
Some strong recent data suggest the Fed is in no hurry to cut rates, pushing the market to reduce the probability of a quarter-point rate hike in June to one-fifth from near zero last week. even interwoven.
In Asia, new evidence that China’s post-COVID-19 recovery is already past its peak, this time from Japan, fell as shipments to neighboring countries fell for a fifth straight month. April exports grew at their weakest pace in more than two years.
Key developments that could affect the market on Thursday:
Central Bank Speakers: Bank of England Chief Economist Hugh Pill, Fed Governor Philip Jefferson, Fed Vice Chairman Michael Burr, Dallas Fed President Rory Logan
Revenue: EasyJet, BT Group and Burberry in the UK.US Walmart, Applied Materials, Alibaba
Reporting by Kevin Buckland.Editing: Edmond Klaman
Our criteria: Thomson Reuters Trust Principles.
