Mixed feelings amid strong US jobs data, bank stress, debt ceiling impasse | MarketTalk: What’s up today? | Swissquote

Show notes

Strong jobs data reversed expectation of a Federal Reserve (Fed) rate cut in July on Friday.
The US 2-year yield rebounded from last week’s lows, but the dollar index remained offered at session highs, on the unresolved US debt ceiling debate, and despite some relief on regional banks front.
US President Biden will meet some congressional leaders this week but will unlikely compromise on spending.
On the economic calendar, investors will focus on US CPI report, due this Wednesday, and Bank of England (BoE) rate decision, due Thursday.
Cable tests the ceiling of a long-term down-trending channel, as economists and markets can’t agree on what the Bank of England (BoE) should do, or what it WILL do.
Economists bet for one more rate hike from the BoE and pause, whereas the interest rate markets price in a 25bp hike this Thursday, followed by one, and possibly two more rate hikes until September.
In equities, the S&P500 closed with a 1.85% gain on Friday, as US regional banks closed a turbulent week with a decent rally. PacWest shares rallied more than 80%, Western Alliance jumped nearly 50% and SPDR’s regional bank index was up by more than 6% on Friday.
US crude jumped nearly 4% on Friday, along with the US equities, but upside potential in US crude will likely remain capped near $75/76, region that shelters the 50 and 100-DMA.
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