Global market: Asian shares trade mixed, SGX Nifty flat - key triggers that will drive stock market today
US President Joe Biden and House Speaker Leader Kevin McCarthy reached a deal over the weekend to raise the United States’ $31.4 trillion debt ceiling and avert a debt default.
PremiumAsian stock markets traded mixed Tuesday ahead of the vote on the tentative US debt ceiling deal. President Joe Biden and House Speaker Leader Kevin McCarthy reached a deal over the weekend to raise the United States’ $31.4 trillion debt ceiling and avert a debt default.
The US Congress is likely to vote on the legislation on Wednesday, but some of the Republican lawmakers are said to oppose the bill, signaling that its passage would not be easy before the US runs out of money.
The US stock futures gained in the early Asian trade, while the stocks in Asian-Pacific region traded mixed.
Asian Markets
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4%.
In Japan, the Nikkei 225 traded 0.35% lower, while the Topix fell 0.63%. China’s Shanghai Composite Index traded flat.
South Korea’s Kospi rallied nearly 1%, while Hong Kong's Hang Seng Index climbed 0.31%.
The SGX Nifty was trading 0.08% higher at 18,705, indicating a flat start for the Indian markets.
US Markets
US markets were closed on Monday on the occasion of Memorial Day.
European Markets
European shares fell on Monday on losses in technology and bank stocks. The pan-European STOXX 600 index ended 0.1% lower.
Germany’s DAX fell 0.2% at 15,952.73. France’s CAC 40 declined 0.2% at 7,303.81 points.
Bullion
Gold prices traded flat, hovering around a two-month low, as optimism over a US debt ceiling deal dented the yellow metal’s safe haven appeal.
The spot gold traded flat at $1,942.16 per ounce, while the US gold futures eased 0.1% to $1,941.80.
Currency
The US dollar fell against a basket of major currencies as the US debt ceiling deal improved risk sentiment.
The dollar index, which measures the US currency against six major peers, eased 0.125% to 104.17, still hovering near its two-month high of 104.42.
The euro gained 0.09% to $1.0715, while sterling was traded 0.11% higher at $1.2365.
The yen strengthened 0.28% to 140.06 per dollar. It touched a six-month low of 140.91 per dollar on Monday.
Bond market
Longer-dated US Treasuries rallied in Asia on the back of a deal to suspend the US debt ceiling until 2025, and avert a debt default. The bill is likely to pass.
The benchmark 10-year yields dropped 6 basis points at the open of trade in Tokyo to 3.7596%. Thirty-year yields fell 5.5 bps to 3.9207%, Reuters reported.
Energy
Crude oil price traded higher as investors monitored the progress on the US debt ceiling deal to avert a default.
US West Texas Intermediate futures rose 0.19% to $72.81 a barrel, while Brent oil eased 0.16% to $76.95 per barrel.
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