Wall Street clings to hopes of reaching an agreement on raising the debt ceiling

Wall Street clings to hopes of reaching an agreement on raising the debt ceiling
Wall Street clings to hopes of reaching an agreement on raising the debt ceiling

US stocks rose yesterday, Wednesday; Investors hope that congressional leaders and President Joe Biden will reach an agreement on the US debt ceiling, avoiding a catastrophic debt default.

The Dow Jones Industrial Average rose 0.4%, the Standard & Poor’s 500 Index rose 0.5%, and the Nasdaq Composite Index advanced 0.4%.

At the end of a meeting between President Joe Biden and congressional leaders, Tuesday, House Speaker Kevin McCarthy said: “It is possible to reach an agreement by the end of the week.” The White House said: “Biden canceled a second leg of an upcoming international trip to focus on negotiations.”

“Now that we have a structure to find a way to reach a conclusion, I think at the end of the day we don’t have a default, and we finally got the president to agree to negotiate,” McCarthy told CNBC.

“Tuesday’s meeting between President Biden and House Speaker McCarthy went as we could reasonably hope,” Andrew Hollenhorst, Citi’s chief US economist, wrote in a note. “We still anticipate a long-term debt ceiling deal.”

Regional bank stocks rebounded on Wednesday, helping market sentiment; Where he spoke «Western Alliance» in detail about the improvement in deposit growth. Western Alliance jumped 10.16%.


European stocks fell, as investors continued to worry about the results of negotiations to raise the US debt ceiling, and whether it would lead to avoiding default, in addition to a group of weak earnings results topped by financial market management companies.

The Stoxx 600 European stock index fell 0.3%, and financial services incurred the largest losses, down 1.3%, followed by utilities, which fell 0.7%. Industries led a modest gain, up 0.45%.

The British FTSE 100 index fell 0.03% to 7,748.68 points. The French “CAC 40” index fell 0.1% to 7,398.86 points. While the German “DAX” index rose 0.37% to 15,958.96 points.

Euronext shares fell 4.2%, after the financial markets operating company announced a decrease in its revenues and profits in the first quarter of the year, and the London Stock Exchange Group share fell 4.2%, after a consortium of investors, including the American payments company Blackstone and Thomson Reuters, sold shares worth about 2.7 billion pounds. ($3.41 billion).

Germany’s Commerzbank fell 3.7%, despite its net profit doubling in the first quarter of the year.

UBS Group shares stabilized after the Swiss bank announced that it expected to incur a financial loss of about $17 billion as a result of the acquisition of Credit Suisse. But the German “SABB” share rose 1.6%, after the software company raised its entire forecast for 2025 profits, and announced a share buyback worth up to five billion euros. German Siemens rose 2.7% after the engineering and technology company raised its forecast for full-year sales and profits.


Mixed performance of Asia Pacific markets; As investors digested economic data from Japan and Australia.

Hong Kong stocks witnessed sharp selling in the last trading hours; The Hang Sang Index fell 2%. Refinitiv data showed that healthcare, real estate and consumer cyclical stocks led declines.

Investors also absorbed new home prices in China, which fell 0.2% year-on-year in April.

In mainland China, the Shanghai Composite Index fell 0.21% to 3,284.23 points, and the “Shenzhen” component witnessed marginal declines, to close at 11,091.08 points.

The Japanese Nikkei 225 index rose 0.84%, surpassing the psychological level of 30,000 points, and closed at 30,093.59 points, for the first time since September 2021, supported by the decline of the yen and a strong season for local profits, after it recorded the highest level at 30,115.32 points in the afternoon session. .

The Topix index rose 0.3% to 2,133.61 points.

In South Korea, the Kospi index rose 0.58% to 2492.66 points, while the Kosdaq index jumped 2.14% to 834.19 points.

In Australia, the “S & P / ASX 200” index fell by 0.49%, at 7,199.2 points; Mining stocks led the losses. (agencies)