Financial Markets Daily Report18 May 2023
In yesterday’s session, US debt ceiling negotiations continued to center the stage in financial markets as President Joe Biden and Republican speaker of the House Kevin McCarthy keep pushing for a deal to avoid a default on sovereign bonds. Biden specified that negotiations are on the fiscal budget, not on whether the US will pay or not its debt.
- In yesterday’s session, US debt ceiling negotiations continued to center the stage in financial markets as President Joe Biden and Republican speaker of the House Kevin McCarthy keep pushing for a deal to avoid a default on sovereign bonds. Biden specified that negotiations are on the fiscal budget, not on whether the US will pay or not its debt.
- In this context, and in absence of major economic data releases, yields on sovereign bonds edged up in the US while declining modestly in the euro area, where peripheral spreads narrowed slightly. In equity markets, stock indices were mixed in the euro area and rose by more than 1% in the US.
- Elsewhere, the US dollar strengthened against most of its peers, with the euro fluctuating below $1.09, and Brent oil prices rose towards $77 per barrel.
- Today the ECB economic bulletin and the US weekly jobless claims will be released.