The DAX had opened the trade with a surcharge, but later ran out of breath and fell back into the red. In the end, he retired 0.20 percent lighter at 15,952.73 points. Also the TecDAX could not keep its initial profits and closed with a small minus of 0.07 percent at 3,226.05 points.
Investors breathed a sigh of relief after an agreement was reached in the US debt dispute between US President Joe Biden and Kevin McCarthy, the Republican chairman of the House of Representatives. According to the US Treasury Department, if the debt ceiling had not been raised, a default would have been imminent as early as the beginning of June.
On the company side, BVB came into focus with its missed championship opportunity, which investors were very disappointed about.
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The EURO STOXX 50 had increased slightly at the start of trading, but fell back to red terrain over the course of the day and closed 0.4 percent weaker at 4,320.01 points.
The topic of the day was the deal in the US debt dispute to raise the debt ceiling. US President Joe Biden and Republican Speaker Kevin McCarthy have reached an agreement here. “But it’s still too early for a final sigh of relief,” commented Thomas Altmann from QC Partners to the German Press Agency. The two chambers of Congress still have to approve the whole thing. In addition, an agreement is already largely priced in.
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The Dow Jones index already posted slight gains when the starting bell rang on Friday and then continued to increase. It went into the weekend 1.00 percent higher at 33,093.27 points. The tech-heavy one NASDAQ Composite opened firmer, then also increased its surcharges and closed with a plus of 2.19 percent to 12,975.69 units.
The top issue on Wall Street on Friday was still the dispute over the debt ceiling. Recently there was concern that the US Democrats and Republicans would not agree on raising the debt ceiling. But then the New York Times reported that an agreement between Republicans and Democrats was imminent. Treasury Secretary Jane Yellen has already warned that defaults are imminent on June 1, but other forecasts give the government until mid-June. “I think we can all breathe a sigh of relief in mid-June, although the market environment is likely to be increasingly volatile by then,” commented Kristina Hooper, Invesco’s chief global market strategist, according to Dow Jones Newswires. “Once this drama settles, all eyes will turn to central banks again.”
The PCE deflator, the Fed’s preferred measure of inflation, was announced before the market. The index was slightly above expectations. Market participants fear that the data could prompt the Fed to implement further interest rate hikes.
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Most of the most important stock exchanges in the Far East were in positive territory on Monday.
The leading Japanese index Nikkei ended Monday’s session up 1.03 percent at 31,233.54 points.
In mainland China it went for the Shanghai Composite finally 0.28 percent up to 3,221.45 points. The hang seng The stock fell 1.04 percent to 18,551.11 at the close after Friday’s Hong Kong public holiday halt.
An agreement was reached over the weekend in the much-noticed US debt dispute: US President Joe Biden and the Republican majority leader in the House of Representatives, Kevin McCarthy, agreed on a bill to avert a default. So far, however, the agreement has not yet passed through both chambers of Congress. However, Republicans appear to be opposed: “There is still significant room for market volatility in the coming days and weeks as the deal could go to a vote as early as Wednesday and face opposition in Congress,” commented MUFG FX analyst Michael Wan Dow Jones Newswires.
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