No one expects the US to default... | MarketTalk: What’s up today? | Swissquote

Show notes

Yesterday was just another day with the same topics. The US debt ceiling talks continued; US President Joe Biden expressed optimism about reaching a deal. US Treasury Secretary Janet Yellen said that the Treasury will soon be running out of money and won’t be able to service its debt.
The US 2-year yield pushed higher to above 4.30%, the S&P500 was little changed near levels last seen last summer, while Nasdaq 100 advanced to levels above last summer peaks, and is now trading at the highest levels since April 2021.
Interestingly however, gold doesn’t see much demand despite the looming debt ceiling talks. Inflows remain limited and the price pressures are to the downside.
But the fact that equities remain strong despite the rising yields, and that gold sees limited safe-haven inflows point that investors watch the US debt ceiling saga as an American film knowing that there will eventually be a happy ending…
US crude remains in a tight range above the $70pb level. Bulls are skeptical as the looming debt ceiling talks in the US are not ideal for appetite, but bears are rare below the $70pb level as the lower the price the higher the risk of another OPEC intervention at the next meeting which will take place at the beginning of next month.
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