The US and Asian markets demonstrated mixed dynamics and the US debt ceiling: what you need to know in the morning

Main news of foreign markets this morning.

0 US stock indices showed mixed dynamics at the end of the week

The S&P 500 added 0.3%, the high-tech Nasdaq added 2.5%, and the Dow Jones index fell about 1%.

Throughout the past week, investors have been closely following the intrigue surrounding the US debt ceiling, expecting it to be raised in the near future to avoid a potential default in the country.

Meanwhile, the Nasdaq showed the best dynamics among the main stock indices of the United States and recorded its fifth consecutive weekly gain thanks to the beginning of the rally in the shares of technology companies, caused by the hype around artificial intelligence technologies.

Shares of the Asia-Pacific region ended the week in different directions

The broad index of Asian shares (excluding Japan) MSCI AC Asia ex Japan Index decreased by 1.1%, Japan’s Nikkei rose by 0.3%, South Korea’s Kospi rose by 0.9%, Singapore’s STI added 0.2%, and China’s Shanghai Composite and Hong Kong Hang Seng decreased by 2.2% and 3.6%, respectively. On Monday, the markets of Asia mainly grow.

Meanwhile, the Japanese Nikkei continues its upward rally and has already reached a 33-year high.

The White House and the US House of Representatives reached an agreement on raising the national debt ceiling

According to CNBC News, negotiators reached a preliminary agreement on Sunday to raise the US debt ceiling and worked to secure enough votes from Republicans and Democrats to pass budget changes in the coming days.

The central place in the compromise agreement is the two-year maintenance of budget expenditures, with the exception of a possible increase in expenditures for defense and veterans’ support.

The parties sought to agree as soon as possible on raising the ceiling of the American national debt, despite the fact that the US Treasury Secretary Janet Yellen said the other day that the United States could default on its debt obligations by June 5 — four days later than previously expected.

The profits of industrial enterprises in China continue to decline

According to the National Bureau of Statistics of China, the profit of the country’s industrial companies in January-April 2023 decreased by 20.6% compared to the same period last year.

Chinese companies continue to struggle with weak domestic demand amid the unstable recovery of China’s economy after the COVID-19 pandemic, as well as a decline in demand in the country’s main export markets.

The gloomy profit figures came after a series of economic indicators for China, covering industrial production, retail sales and real estate investment, showed that the recovery in the world’s second largest economy is losing momentum.

Earlier this month, the country’s Prime Minister Li Qiang promised to take measures to expand domestic demand and stabilize external demand in order to promote a sustainable recovery of China’s economy.

Author: Editor of the news feed Yaroslav Holoborodko Writes on the topics: Macroeconomics, stock market, cryptocurrency

• State debt
• USA
• Shares (securities)
• Stock market

Source: Ministry of Finance

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