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Debt ceiling talks in the US led to some progress, but no deal was reached yesterday.
And even though there is a strong belief that the US politicians are not foolish to trigger a self-induced economic crisis and that they will reach a deal just before time, appetite in risk assets looks weakened. The US 2-year yield spiked to 4.40%, while gold struggled to gather positive momentum, as the US dollar is where investors seek refuge – as absurd as it sounds.
But crude oil performed well on Tuesday despite the US det ceiling shenanigans, as the Saudi Prince Abdulaziz...

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...

The European stocks were up and the S&P500 hit a fresh high since summer, until Garret Graves, who was negotiating for the Republicans abruptly walked out, calling the White House ‘unreasonable’ and declaring that the discussions are on a pause.
Equities sold off and yields rose.
Happily, US President Joe Biden and House Speaker Kevin McCarthy had a ‘productive’ call Sunday and agreed to resume talks today, to avoid what could be a very damaging US default.
The market mood is sweeter this Monday on news that the US politicians will at least resume talks after Friday’s crisis. They will...

Most European markets were closed yesterday due to bank holiday, but debt ceiling discussions in the US continued at their full speed, and led to some further optimism about a potential deal that could be reached by next week.
While an agreement on debt ceiling is highly likely, what concessions will be made on spending is more important moving forward.
Elsewhere, US retail giants announced earnings to help investors get a better sense on where the US consumer spending winds are blowing. The latest GDP data had revealed a surprisingly resilient consumer spending – which makes up around two thirds...

Ethereum is fighting with technical issues! What's the background here and why could this mean more problems for the ecosystem?

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Risk sentiment remains poor as the US couldn’t reached an agreement on its debt ceiling.
But House Speaker McCarthy hinted that an agreement is possible within days.
Yesterday, both equities and bonds were sold off on US debt ceiling impasse, while the US dollar index remained capped at two-week highs.
On the data front, disappointing Home Depot results, mixed retail sales and better-than-expected industrial data didn’t change the Fed pause expectation for June.

However, the weak Chinese data from earlier this week, combined to German pessimism and a 3.7 mio barrel build in US inventories kept crude oil under decent...

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...

The People’s Bank of China (PBoC) kept the interest rates unchanged at today’s monetary policy meeting, but extended long-term liquidity to boost anemic Chinese growth.
But interestingly, the higher PBoC liquidity and looser PBoC rate expectations couldn’t boost global growth optimism this Monday. Crude oil slipped below $70pb, while copper futures remained under pressure.
In the US, data released Friday showed that the US consumer sentiment fell to a 6-month low, as long-term inflation expectations jumped to a 12-year high, fueling worries that the Federal Reserve (Fed) may not stop hiking the interest rates, or, it won’t be able to...

As expected, the Bank of England (BoE) raised the rates for the 12th time yesterday, and Governor Bailey left the door open for further rate hikes.
Cable fell, and tipped a toe below the 1.25 mark, but the selloff was mostly driven by a broadly stronger US dollar.
Even though the US PPI data came in softer than expected, and US jobless claims reached the highest since October 2021 and PacWest slumped 22% after announcing that its deposits fell nearly 10% last week, and the US 2-year yield fell - all these factors normally being bearish for the dollar -,...

Inflation in the US came in slightly better than expected by analysts. The headline inflation slipped below the 5% psychological mark – to 4.9%. Core inflation eased to 5.5%, and the monthly headline figure jumped to 0.4% from 0.1% printed a month earlier, as expected.
Fed rate cut expectations jumped again. The consensus is that the Fed's latest rate hike was certainly its last for this cycle, and the Fed will cut the rates by 75bp before the year ends.
US yields and the dollar fell, equities found support. Nasdaq advanced to highest levels since last August.
Across the Atlantic...