US debt ceiling deal is unlikely before last minute! | MarketTalk: What’s up today? | Swissquote

Show notes

US stocks kicked off the week on a slightly positive note on the back of weak economic data – that fueled the Federal Reserve’s (Fed) pause expectations, glim hope that the debt ceiling talks between Joe Biden and Kevin McCarthy could lead to resolution and on Microsoft gaining EU approval to buy Activision.
But all of the latter are weak reasons to jump on a bullish trade
Elsewhere, the latest economic data released in China showed that retail sales and industrial production grew slower than expected in April, while fixed asset investment unexpectedly fell.
Crude oil traded past $71pb yesterday on news that People’s Bank of China boosts liquidity to fuel growth in China, but as long as the hard data is not there to confirm improved activity, it will be hard for oil bulls to justify a significant advance.
Today, investors will keep an eye on European growth and sentiment data, the US retail sales figures and Home Depot earnings. In the coming days, other US retailers including Target and Walmart are due to announce earnings to give a sense of how US consumers are coping with the sticky-high inflation.
The latest GDP report revealed surprisingly resilient consumer spending – which in return puts a positive pressure on inflation expectations, and Fed bets. Therefore, any further resilience in retailer earnings would keep the Fed hawks alert.
Listen to find out more!