- US equity futures rose somewhat following Friday's strong performance on Wall Street, while European stocks fell amid cautious optimism that the US will avoid a catastrophic default following the weekend's tentative agreement.
- Contracts on the S&P 500 increased by around 0.3%, while those on the NASDAQ 100 increased by about 0.4%. In the absence of cash trade, the dollar, which has benefited from concern about the statutory borrowing limit, retained Friday's fall, while Treasury futures were flat.
- With the US, UK, and some European markets closed for national holidays, the STOXX Europe 600 index lost an early lead. Spain's benchmark fell after PM Sanchez called an unexpected snap election after his party suffered significant losses in regional and local elections on Sunday. Chinese stocks were heading for a bear market.
- Biden and House Speaker McCarthy both expressed optimism that their agreement will be approved by Congress. Even if politicians reach an agreement before the US government runs out of funds in about a week, traders would face a slew of challenges, ranging from the possibility of another Federal Reserve rate hike to a flood of bond issuance from the US Treasury Department.
