In pre-market U.S. trading, we see market sentiment slightly positive and Treasury yields cooling after yesterday's sharp rise on growing signals that lawmakers in Washington are making progress on raising the debt ceiling.
Republican and White House negotiators have narrowed their differences in talks in recent days and are nearing an agreement on raising the debt ceiling and capping federal spending for two years, according to people familiar with the matter. While some details appear to be settled, including some budget cuts and the possibility of increasing defense spending by 3%, other details are still being discussed and a final agreement is not yet in sight.
In pre-market trading, shares of Marvell Technology rose after the U.S. chipmaker forecast a big jump in sales of artificial intelligence technologies.
Markets in China fell again, with the Hang Seng in particular continuing to fall sharply (it ended the day 1.93% lower). European stocks are mixed.
GBP gained after UK retail sales came in better than expected and expectations rose that interest rates will continue to rise.
Slightly cooler US Treasury yields, after yields rose sharply yesterday, helped the USD index cool slightly, which also benefited commodity prices, including oil and gold. AUD may stabilize and rise slightly after recent sharp losses.
PCE (U.S. inflation) data was hot, adding to fears that the Fed will delay rate cuts even longer – weighing on market sentiment and reducing the positive impact of rising hopes for an early end to debt ceiling negotiations.
👁 ROB'S MARKET OVERVIEW:
May 26, 2023
🇺🇸 US Markets ↕️/↗️ (if debt cap talks end positively; then ↗️)
Cyclical Stocks ↕️
Tech/Growth Stocks ↕️/↗️
Financial Stocks ➡️/↗️
Defensive Stocks ➡️/↗️
Energy Stocks ➡️/↗️
Materials Stocks ➡️/↗️
💱 Forex
GBP ↗️
AUD ➡️/↗️
USD ➡️ (stabilizing after slight losses)
EUR, CHF ➡️
JPY ➡️/↘️
⚒ Commodity Markets ↕️/↗️
Oil prices ➡️/↗️
Natural Gas prices ↕️
Metal prices ↕️/↗️
Precious Metal prices ➡️/↗️ (benefiting from slightly cooling Treasury yields)
⚡️Cryptos ➡️
(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)
Yours, Robert