31/05/2023
Today’s Announcements & News
Asia
Tuesday’s Asia-Pacific markets are mixed due to a vote on the tentative debt ceiling agreement that President Joe Biden and House Majority Leader Kevin McCarthy reached over the weekend to prevent the U.S. economy from defaulting.
The U.S. Congress is set to decide on the regulation as soon as Wednesday. There has been no indication from legislators that they intend to return to Capitol Hill earlier to work on the deal. Both conservative and Vote based help is required for the bill consent to pass.
The Nikkei 225 closed 0.30 percent higher at 31,328.16 in Japan, maintaining its 33-year high, while the Topix closed at 2,159.22. From 2.8% in March, Japan’s unemployment rate decreased slightly in April to 2.6%.
In Australia, the S&P/ASX 200 crawled down 0.11% to close at 7,209.3, snapping a three-day series of wins.
South Korea’s Kospi gotten back from a public occasion and climbed 1.04% to close at 2,585.52, its most significant level in nearly 12 months, while the Kosdaq saw an increase of 0.98% to end at 851.5.
Tuesday saw gains in mainland Chinese markets, with the Shanghai Composite closing slightly higher at 3,224.21 and the Shenzhen Component rising by 0.44% to 10,869.55, rebounding from its lowest level since November 2022.
The Hang Seng Index and the Hang Seng Tech index both saw larger gains of 1.24 percent in the final hour of trading, snapping a four-day losing streak for Hong Kong stocks.
United States
The Dow Jones Modern Normal fell on Tuesday as Money Road considered the probability of Congress passing a conditional arrangement on raising the U.S. obligation roof.
The 30-stock file lost 50.56 focuses, or 0.15%, to end at 33,042.78. After trading both above and below the flatline throughout the session, the S&P 500 was able to manage a gain of 0.002% to settle at 4,205.52 at the close. After trading up as much as 1.4% earlier in the day, the Nasdaq Composite added 0.32 percent to finish at 13,017.43. This resulted in a paring of gains.
Over the weekend, President Joe Biden and House Majority Leader Kevin McCarthy came to an agreement to raise the debt ceiling and avoid a default. Congress is expected to vote on the legislation on Wednesday. Both conservative and Popularity based help is required for the proposed bill to pass.
The agreement comes just a few days before Monday’s so-called X date, when the Treasury Department indicated that the United States could default on debt obligations at any time. Investors became more concerned about the possibility of a default as a result of the extended negotiations that took place between the White House and the leaders of Congress. In spite of the conditional understanding, impediments stay on the way to section for the trade off bill in the House in the midst of developing resistance inside the GOP.
Commodity
Oil prices fell by more than 4% on Tuesday as mixed messages from major producers clouded the supply outlook ahead of the OPEC+ meeting this weekend and raised questions about whether Congress will pass the debt ceiling agreement.
Brent crude futures fell to $73.54 a barrel by 4.58 percent. U.S. West Texas Halfway (WTI) rough was down $4.42%, from Friday’s nearby, to $69.46 a barrel. Monday’s settlement was postponed due to a public holiday in the United States.
A deal to raise the debt ceiling in the United States, the largest oil user in the world, may face opposition from some hard-right Republican lawmakers, according to reports. Both Republican House of Representatives Speaker Kevin McCarthy and Democratic President Joe Biden maintained their optimism that the agreement would be approved.
Over the weekend, Biden and McCarthy came to an agreement that must be approved by a divided U.S. Congress before June 5, when the Treasury Department declares that the nation will not be able to meet its financial obligations, which could disrupt financial markets.
Gold recovered from its initial losses on Tuesday, as market optimism about the U.S. debt ceiling agreement led to a decline in Treasury yields and a decline in the value of the dollar.
After falling to its lowest level since March 17, spot gold gained 0.8% to $1,958.59. At $1,958, U.S. gold futures gained 0.7 percent.
The above analysis is only for the views of market researchers and is for reference only and is not regarded as a specific investment suggestion.
