Asian equities, led by Hong Kong, declined due to worsening industrial activity in China and concerns about a potential US government default.
Chineses HKComp declined 0.9% and CHNComp dropped 0.7%. Japanese Nikkei225 fell by 1.0%, Australian S&P/ASX200 dropped by 0.9% and KOSP200 by 0.4%.
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Futures indicate a lower opening for the European market, with the DAX trading around 0.5% lower at approximately 15,870 points and the EU50 showing a similar change.
During the Goldman Sachs Global Semiconductor Conference Goldman Sachs predicts a significant revival of the semiconductor sector next year, which would boost Korean corporate profitability. Low global investor positioning could lead to substantial gains.
Oil prices experienced their largest drop in four weeks due to weaker demand signals and ample supply ahead of the upcoming OPEC+ summit. Energy companies dragged down the S&P 500. OIL.WTI is trading below $70 dollars again.
Yesterday, Nasdaq 100 gained 0.4% but ended below its day's high as investors analyzed the impact of artificial intelligence on the index. Today US100 futures are trading 0.35% lower around 14,355 points.
German and French inflation data and bond yields ahead.
Cleveland Fed Loretta Mester sees no need to wait for more evidence and finds a stronger case for raising rates. The recent debt ceiling deal removes significant uncertainty, but the decision may still be influenced by NFP and the next inflation report in June.
Despite challenges from hard-line Republicans, House Speaker Kevin McCarthy expressed confidence in enacting legislation to prevent a US default, as the House Rules Committee approved the bill.
The debt-limit agreement would reduce spending on federal government programs, but it would have a minimal impact on the anticipated budget deficits of around $20 trillion over the next ten years.
On Tuesday, a small majority of members from the House rules committee moved the bill forward. This paves the way for a crucial vote in the full House, which could happen today.
Cryptocurrencies fell at night with BTC trading 2.0% lower and ETH 1.7% lower as investors kept a close eye on the progress of the US debt ceiling deal. The focus is on the upcoming House vote scheduled for today.
JAP225 experienced a deeper correction after reaching a multi-decade high. Today, the index is trading 1.1% lower, reflecting a weaker Industrial Production reading, H4 timeframe, source: xStation 5
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