- American equities futures and Asian shares rose as risk appetite returned to global markets following the agreement reached by Biden and House Rep. Speaker McCarthy on the US debt ceiling.
- S&P 500 futures rose nearly 0.3% in Asia on Monday, while Japanese and Australian stock indexes gained more than 1%. After a holiday Friday, technology companies led gains in Hong Kong, with NetEase soaring over 7% on excellent earnings.
- Gold was flat on declining demand for safe havens, while oil and Bitcoin rose, reflecting the more upbeat tone.
- An index of dollar strength dipped slightly after reaching a 2-month high earlier last week, as currency markets moved more slowly on Monday. After then, the dollar moved in tight ranges of less than 0.2% against most of its major peers.
- On Friday, investors became more confident that an agreement would be reached in Washington, driving advances in US equity indexes. Shares there have also continued to rise as a result of the hype around artificial intelligence and tech stocks.
- On Friday, traders demanded a lower premium to hold US Treasury bills, which were considered as the most vulnerable to nonpayment if a deal was not struck in time. Monday is a holiday in the US, as well as in the UK and parts of Europe.
- The obvious positive interpretation is that a negative tail risk is on the verge of being eliminated, Dan Suzuki, deputy chief investment officer at Richard Bernstein Advisors, said. He also stated that, With the distraction of the debt ceiling fading into the background, investors can now refocus their attention on the underlying fundamentals. Nonetheless, one source of concern is that the underlying picture remains unstable.
