Financial Markets Daily Report25 mayo 2023
Tensions around the US debt ceiling negotiations continued weighting on investors’ sentiment. Even though the opposition leader, McCarthy, signaled optimism about a deal after the latest round of talks, rating agency Fitch Ratings warned the nation’s AAA rating may be downgraded due to the political standoff.
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- Tensions around the US debt ceiling negotiations continued weighting on investors’ sentiment. Even though the opposition leader, McCarthy, signaled optimism about a deal after the latest round of talks, rating agency Fitch Ratings warned the nation’s AAA rating may be downgraded due to the political standoff.
- FOMC minutes from May’s meeting confirmed some policymakers were pondering to pause their rate hiking cycle, while others supported as well keeping options open and conditional on data. On the data front, the Ifo survey showed German business sentiment fell further than expected in May due to a sharp decline in future expectations.
- Amidst this background, equity indices dropped, more notably across Europe, and the dollar acted as a safe haven, appreciating against its peers and closing at 1.075 against the euro. Bond yields rose in both sides of the Atlantic, more markedly in the US.