Analyzing current market movements and drivers, Ip Yunrong, Market Expert at VIG, said, “I think the markets are downplaying the risk of a US debt default, which translates into an increase in investors’ appetite for risk.
US President Joe Biden and House Speaker Kevin McCarthy this week renewed their intention to reach an agreement soon to raise the federal debt ceiling to $31.4 trillion, and agreed to hold talks by Sunday.
Sentiment remains mixed as investors balance optimism that the United States will avoid a default, with inflation data that could warn that global central banks will raise interest rates.
According to the latest data, analysts believe that inflation in the United States is not falling fast enough to allow the United States Federal Reserve to halt its interest rate hikes, as statements by two federal decision makers.
However, although there is more time until the date of the next decision, the markets still expect 62.2% on the CME FedWatch index that the Fed will prove its interest in its next decision.
price movements
Brent crude futures rose 73 cents, or 1%, to $76.59 a barrel at 0650 GMT, and U.S. Nymex crude rose 62 cents, or 0.9%, to $72.48 .
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