Wall Street opens with a mixed signal: Investors focus on spending limits

Wall Street opens with a mixed signal: Investors focus on spending limits

Investors these days are focusing on the spending cap of the US, the world’s largest economy. US President Joe Biden, Speaker of the House Kevin McCarthy and other leaders Congress to meet this Tuesday to discuss budget talks To prevent default on US bonds.

The Dow Jones Industrial Average and S&P 500 posted back-to-back weekly losses last week amid concerns that the Federal Reserve’s aggressive year-long tightening cycle could push the economy into recession.

Monday’s main report is the New York Empire State Manufacturing Index, but the week also includes April retail sales data, housing data and the weekly initial jobless claims report.

Rafael Bostic, President of the Federal Reserve Bank of Atlanta, said that No interest rate cut expected this year Because inflation is likely to be stronger than the market believes and in any case, “we may have to raise them.”

“The proper policy is really to wait and see how much the economy slows down with the policy actions we take,” Biostic told CNBC. Range. %-5.25% where they currently are.

At the corporate level, Newmont, the world’s largest gold producer, agreed to acquire all the issued shares of the Australian company Newcrest For a value of 26,200 million Australian dollars (17,449 million US dollars or 16,066 million euros), trade sources reported on Monday.

The Tokyo Stock Exchange today closed with a gain of 0.81% in its main indicator Nikkei. Encouraged by exporters, again ends at its best level in 18 months And more recently for the earnings announcements of several Japanese companies. The Nikkei gained 238.04 points to end at 29,626.34, while the Topix index, which groups stocks with the largest capitalizations, gained 18.46 points, or 0.88%, to end at 2,114.85.

Germany’s wholesale price index fell slightly in April compared with the same month a year earlier, the first year-on-year decline since December 2020, according to data released on Monday. The federal statistics office said wholesale prices fell 0.5% from the previous month and 0.4% from the previous month, compared with March readings of 2.0% and 0.2%.

Japan’s wholesale inflation slowed for a fourth straight month in April as commodity prices rose, data showed on Monday, suggesting consumer inflation will begin to ease towards the target for the year. 2% set by the central bank.

According to BOJ data, the corporate goods price index, which measures the prices that companies charge each other for their goods and services, rose 5.8% in April from a year earlier, its annual pace for the fourth straight month. had slowed down. The growth beat the average market forecast for a 5.4% rise and followed the 7.4% increase in March.

China’s central bank on Monday rolled over overdue medium-term debt and kept interest rates unchanged as expected, but markets expect monetary easing will be inevitable in the coming months to support the economic recovery.

The People’s Bank of China said it was lending 125 billion yuan ($18.08 billion) in one-year medium-term loans (MLF) to some financial institutions, keeping the interest rate unchanged at 2.75% of the previous operation.

leader of Group of Seven (G7) plans to tighten sanctions on Russia at their summit in Japan this weekWith measures targeting the energy sector and exports helping Moscow’s war campaign, officials with direct knowledge of the discussions said.

Crude flows from northern Iraq to the Turkish port of Ceyhan have not resumed following Baghdad’s request to resume last week, according to industry and government sources, while the Turkish government is in election limbo. Turkey held presidential elections on Sunday, but neither of the two leading candidates crossed the 50% threshold of the vote and a runoff is scheduled for May 28.

Oil prices rose marginally on Monday as OPEC+ cuts and resumption of stock-buying by the United States rekindled fuel demand concerns in the United States and China, the world’s top crude consumers. Hui.

Brent crude futures were up 39 cents, or 0.5%, at $74.56 a barrel, while US West Texas Intermediate crude was up 41 cents, or 0.6%, at $70.45 a barrel.