Financial Markets Daily Report 19 May 2023
In yesterday's session, investors traded with an optimistic mood as negotiations between Democrats and Republicans to raise the US debt ceiling seemed to advance fast. Accordingly, House speaker (McCarthy) and Senate Majority Leader (Schumer) are already preparing the vote count for a bipartisan deal to avoid reaching the debt ceiling.
- In yesterday's session, investors traded with an optimistic mood as negotiations between Democrats and Republicans to raise the US debt ceiling seemed to advance fast. Accordingly, House speaker (McCarthy) and Senate Majority Leader (Schumer) are already preparing the vote count for a bipartisan deal to avoid reaching the debt ceiling.
- In this context, yields on sovereign bonds rose across the board, with significant advances also in the euro area, where ECB Vice President Luis de Guindos said that further interest rate hikes are needed, although most of the tightening has already been done. Equities edged up in most advanced and emerging economies.
- Elsewhere, the price of the barrel of Brent fell as the US dollar strengthened against its peers (the euro fluctuated below $1.08). Also, the price of the European natural gas continued to decline and fluctuated below 30€/MWh, a level not seen since July 2021.