- Asian market futures rose, while US and European stock futures fell, as investors evaluated the Federal Reserve's expected pause in interest rate hikes against the risk of a debt default by Washington.
- Shares in Australia sank as markets in Japan and China gained modestly amid volatile trading. South Korea was an outlier, with the Kospi rising as much as 0.9% and on track for its sixth daily increase.
- Futures for the S&P 500 and Nasdaq 100 were fractionally lower, adding to Friday's minor declines, as did those for the Euro Stoxx 50. The yen and the Swiss franc climbed, showing some desire for safe havens, while the dollar index declined marginally.
- Treasuries rose, with the policy-sensitive 2-yr note's yield falling 4 bps. Government bonds in Australia and New Zealand were hardly altered.
- Biden and House Rep. Speaker McCarthy are set to meet in Washington after a constructive phone discussion over the weekend. Yet, one Republican negotiator is insisting on a multi-year spending cap, delaying talks even as a default may occur as early as June 1.
- Traders are particularly focused on the future of the Fed's benchmark interest rate, with bets on a June boost reduced to 25% after Fed's Powell announced a halt. Fed's Kashkari may also support a halt.
