NY Dow and cryptocurrency-related stocks rebound sharply, fear of US default receding | 18th Financial Tankan

1 year ago 89

5/18 (Thursday) morning market trends (compared to the previous day)

traditional finance

NY Dow: $33,420 +1.2%
Nasdaq: $12,500 +1.2%
Nikkei Stock Average: ¥30,093 +0.8%
USD/JPY: 137.5 -0.05%
US dollar index: 102.8 +0.2%
10-year US Treasury yield: 3.5 +0.6% annual yield
Gold Futures: $1,985.9 +0.01%

crypto assets

Bitcoin: $27,370 +1.2%
Ethereum: $1,823 -0.2%

NY Dow today

Today’s NY Dow sharply rebounded to +408.6 dollars. The Nasdaq closed at +$157.5. Expectations that the US debt ceiling issue will be resolved within this week seem to have induced buying.

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Progress on the U.S. Debt Problem

U.S. President Joe Biden said at a news conference on Wednesday that he was confident that senior lawmakers from both parties would reach a deal to raise the debt ceiling, which would prevent a default. He also said he plans to hold a press conference on the 21st to discuss progress. “X-Day” is June 1st.

House Speaker McCarthy also said the United States would not default on its debts and said a deal within the week was “workable”.

The day before, President Biden and Speaker of the House of Representatives McCarthy held discussions on the debt issue as planned, but at that time no agreement was reached and discussions continued.

In addition, the heads of major US banks, including JPMorgan Chase & Co. CEO Jamie Dimon and Citigroup CEO Jane Fraser, were invited by Senate Minority Leader Chuck Schumer of the Democratic Party on the 17th to discuss the debt ceiling issue. Dimon commented that there would “probably” not be a default.

The dollar continued to rise on hopes of avoiding default, and the dollar/yen exchange rate rose to 137.71 yen at one point. The “list-on” mode spread, and the US Treasury market fell across the board.

Source: Yahoo! Finance

U.S. Housing Starts in April

U.S. housing starts rose 2.2% to an annualized rate of 1.4 million in April, beating expectations of 1.4 million. The number of construction permits for detached houses increased to the level for the first time in seven months since September last year, but the number of housing construction permits decreased by 1.5% from the previous month to 1,416,000.

While the data confirms that the residential real estate industry is gradually recovering, Nationwide chief economist Vostjancic said “the housing market is still far from a significant recovery,” citing tightening credit conditions and other factors, according to Reuters. ” he commented.

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economic indicators

May 18, 21:30 (Thursday): Number of continuous recipients of unemployment insurance and number of new applications for unemployment insurance for the previous week
Friday, May 19, 24:00: Chairman Powell of the Federal Reserve Board remarks
May 23, 22:45 (Tuesday): US May Manufacturing Purchasing Managers Index (PMI, preliminary figures)
May 25, 3:00 (Thursday): Federal Open Market Committee (FOMC) Minutes
May 25, 21:30 (Thursday): U.S. January-March Quarterly GDP Personal Consumption (revised value)

US stocks overall high

IT/Tech stocks are high across the board. Individual stocks compared to the previous day: NVIDIA +3.3%, c3.ai +14.3%, Tesla +4.4%, Microsoft +0.9%, Alphabet +1.1%, Amazon +1.8%, Apple +0.3%, Meta +1.5%.