European stocks may open on a firm note Monday despite the U.S. debt ceiling stalemate and renewed uncertainty about the Fed’s rate path.
U.S. President Joe Biden and House Republican Speaker Kevin McCarthy will meet later today for talks on averting a catastrophic debt default.
The U.S. could default on its debt as soon as June 1 if Congress fails to raise the borrowing threshold.
Asian markets traded mixed after Fed Chair Jerome Powell hinted that interest rates may not need to rise further.
Chinese and Hong Kong stocks edged up after Biden said he expects to see a “thaw” in U.S. relations with Beijing and that the G7 had also decided on a united approach to China.
Earlier today, China’s central bank kept the benchmark lending rates unchanged, as expected.
The U.S. economic calendar remains heavy this week, with reports on new home sales, durable goods orders and personal income and spending as well as the minutes of the latest Fed meeting likely to be in focus.
The dollar slipped on stalled debt ceiling talks and gold held steady while oil prices fell about 1 percent on concerns that China’s recovery is faltering.
U.S. stocks ended lower on Friday after rising sharply over the two previous sessions.
Concerns around the economy deepened after Republican negotiators walked out of a meeting over raising the U.S. debt ceiling and Fed Chair Jerome Powell said that inflation continued to be “far above” the central bank’s target.
Regional bank stocks fell after Treasury Secretary Janet Yellen reportedly told executives that more mergers may be necessary.
The Dow shed 0.3 percent, the tech-heavy Nasdaq Composite eased 0.2 percent and the S&P 500 slid 0.1 percent.
European stocks rose on Friday as investors monitored U.S. debt ceiling talks and reacted to a slew of regional data.
The pan European STOXX 600 gained 0.7 percent to reach a one-year high. The German DAX climbed 0.7 percent to scale a new peak, while France’s CAC 40 added 0.6 percent and the U.K.’s FTSE 100 edged up 0.2 percent.
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