2023-05-09 22:21:50
US stocks closed lower… and eyes are on the White House
After quiet, risk-free movements, US stocks ended Tuesday’s trading in decline, awaiting the two inflation reports for the month of April, while all eyes were directed towards the White House, which is witnessing President Joe Biden’s meeting with leaders of both parties, in an attempt to get out of the ceiling crisis. Religion that has been around for a long time, and continues to grow.
In trading on the second week of the week, the announcement of inflation data for the month of April, as well as negotiations to raise the debt ceiling, and the continuing complexity of the position of US regional banks, witness the Dow Jones Industrial Average falling by 0.17%, and the S&P 500 index losing 0.6% of its value, while it was The loss in the Nasdaq index was 0.6%.
In the absence of optimism regarding the possibility of reaching an agreement at today’s meeting on raising the debt ceiling, Wall Street investors are waiting for the release of consumer price data on Wednesday, and then the producer price data on Thursday, in an attempt to anticipate the Federal Reserve’s next move, regarding interest rates.
On Tuesday, a group of Wall Street executives told Treasury Secretary Janet Yellen that “a US default would sow chaos in the financial system and the broader economy.”
In a letter to Ms. Yellen on Tuesday, the executives who served on the Treasury Borrowing Advisory Committee said the debt limit should be raised immediately, and then explore the possibility of either permanently fixing it to the appropriations or eliminating it entirely.
In Europe, stocks fell on Tuesday, as sentiment was affected by the fact that some companies achieved weak profits, while investors eagerly await US inflation data, as it may be an indication of the monetary policy plans of the Federal Reserve, and with it the major central banks.
The Stoxx 600 index closed down 0.3%, as SBB share lost nearly a quarter of its value, reaching its lowest level in five years, following the Swedish real estate company said yesterday, Monday, that it would postpone the payment of dividends, and would not offer equity worth of 2.63 billion Swedish kronor ($259.1 million), following the downgrade of “Standard & Poor’s Global” its credit rating.
Archyde.com said that the European real estate sector also took a hit, and fell by 2.9%.
Shares of major companies with exposure to China, such as “Hermes International”, “Perno Ricard” and “Kering”, fell by rates ranging between 0.9% and 2.7%, following weak data on Chinese imports and exports.
Britain’s FTSE 100 also fell by 0.2%, following a long weekend due to the coronation of King Charles III.
Oil prices rose today, Tuesday, before settling, following declining more than 2%, earlier in the session, thanks to the US government’s announcement of plans to refill strategic crude reserves and expectations of higher seasonal demand.
Brent crude closed up 43 cents, or 0.6%, to $77.44 a barrel, while US West Texas crude closed up 24 cents, or 0.3%, at $73.39.
US Energy Secretary Jennifer Granholm said the department may start buying back crude oil for the Strategic Petroleum Reserve later this year, following President Joe Biden approved last year’s largest sale of stock so far.
The Energy Information Administration, the statistical arm of the US Department of Energy, said in a report, quoted by “Archyde.com”: “We expect that the seasonal rise in oil consumption and the decrease in OPEC crude oil production will put increasing pressure on crude oil prices in the coming months.”
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