Just a couple of days ago, markets bounced on the back of hopes talks on raising the US debt limit were in play, on growing confidence a deal to raise the $31.4 trillion debt limit could be reached in coming days, with the benchmark S&P 500 climbing more than 2%. But as this came to a sudden halt, the optimism that had been building through the week fell away. As a result, U.S. stocks ended lower and the dollar lost ground on Friday as the negotiations to raise the U.S. debt ceiling were put on hold, yet moving closer to the deadline to avoid default. Then reports were made suggesting talks had recommenced.
Initial reports that debt ceiling negotiations had reached an impasse rattled markets even as investors were scrutinizing Federal Reserve Chairman Jerome Powell’s remarks in a panel discussion for clues regarding next month’s interest rate decision. In his remarks, Powell said that uncertainties surrounding the lagging impact of past rate hikes and recent bank credit tightening made it unclear whether more monetary tightening will be necessary.
All this is creating febrile markets, where big players can trade the volatility. But others may be best on the sidelines!
CONTENTS
0:00 Start
0:15 Introduction
1:00 Debt Ceiling Impasse?
2:15 Powell On Inflation, Credit and Rates
6:24 US Markets
11:08 Europe and UK
13:40 Asian Markets
17:15 Gold
18:32 Oil
19:40 Australian Markets
21:20 Crypto
22:54 Summary And Close
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