The U.S. markets remain shut on account of Memorial Day today, however, U.S. Futures are trending higher on Monday morning, following progress on the nearly struck deal on the U.S. debt limit. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up by 0.46%, 0.33%, and 0.28%, respectively, at 5:30 a.m., EST, May 29. U.S. stocks hit their nine-month highs on Friday owing to favorable economic data and hopes of reaching a debt ceiling deal.
On Sunday evening, both President Biden and House Speaker Kevin McCarthy reached an agreement to raise the debt limit and hoped to gain maximum votes from both parties on the deal. Speaking after the meeting yesterday evening, both confirmed that the deal is not in favor of any one party and that they have compromised to agree on a deal for the betterment of the American people. Meanwhile, Treasury Secretary Janet Yellen has changed the earliest date of debt default to June 5 from June 1, giving a little more breathing space for the bill to pass.
Looking ahead, the week will be marked by a series of important economic reports, including consumer confidence data, the JOLTS Job Openings report, initial jobless claims, non-farm payrolls, and the unemployment rate. Last week’s solid personal consumption expenditures (PCE) figures have puzzled traders about the Fed’s next rate hike decision.
European indices are trading mixed today as markets look to hear the details of the U.S. debt limit deal. At the same time, U.K. markets remained closed for trading today.
Asia-Pacific Markets End Higher
Most Asia-Pacific indices ended the trading session in the green today, following the news that the U.S. had reached a deal to raise the debt ceiling.
Hong Kong’s Hang Seng index and China’s Shenzhen Component index bucked the trend and ended the day down 1.04% and 0.80%, respectively. Meanwhile, China’s Shanghai Composite ended the trading session higher by 0.28%.
At the same time, Japan’s Nikkei and Topix indices ended up by 1.03% and 0.69%, respectively.
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