- European stocks were lower today as investors were keen to see how this weekend's US debt ceiling deal will progress through Congress.
- President Joe Biden and House Majority Leader Kevin McCarthy reached a deal over the weekend to lift the $31.4 trillion federal debt ceiling through January 2025 in exchange for curbs on spending and cuts to government programs. However, optimism surrounding the deal, and thereby avoiding a US debt default, has been dampened by concerns about how it will fare in both houses of a divided Congress.
- In Europe, Spain's May inflation reading surprised by a 0.1% month-on-month drop to an annual increase of 3.2%, well below expectations of 4.4%. In addition, Spanish retail sales rose 5.5 percent in April from a year earlier, significantly better than the 0.7 percent growth expected, while the Swiss economy grew at a faster-than-expected rate at the start of the year, which It was supported by strong domestic demand and increased exports.
- Oil prices edged lower on Tuesday, reversing rising optimism over the U.S. debt ceiling as the dollar strengthened and worries about China's sluggish economic recovery. Concerns about the strength of the recovery in China, the world's biggest crude importer, have weighed on the crude market this year, with traders focused on key May manufacturing and services sector data due on Wednesday. To be published.
A stronger dollar, which makes crude more expensive for foreign buyers, also weighed on the oil market as better-than-expected U.S. inflation data pointed to more interest rate hikes by the Federal Reserve.
