{"id":1940251,"date":"2023-05-29T07:48:19","date_gmt":"2023-05-29T11:48:19","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/marketmind-relief-rally-eyed-on-us-debt-ceiling-deal\/"},"modified":"2023-05-29T07:50:32","modified_gmt":"2023-05-29T11:50:32","slug":"marketmind-relief-rally-eyed-on-us-debt-ceiling-deal","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/marketmind-relief-rally-eyed-on-us-debt-ceiling-deal\/","title":{"rendered":"US debt ceiling deal may trigger relief rally, says Marketmind."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmarketmind-relief-rally-eyed-on-us-debt-ceiling-deal%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1940251&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>MarketMind: Relief Rally Eyed<\/h2>\n<blockquote>\n<p>By Jamie McGeever<\/p>\n<p>(Reuters) \u2013 A look at the day ahead in Asian markets from Jamie McGeever.<\/p>\n<\/blockquote>\n<div class=\"entry-content\">\n<p>Optimism and relief are likely to be the dominant emotions for investors on Monday, giving markets in Asia a lift as lawmakers in Washington reached a tentative agreement on the U.S. debt ceiling, thus removing the risk of a catastrophic default.<\/p>\n<p>Trading and market liquidity in Asia will be lighter than usual, however, with U.S. and UK markets closed for holidays, opening up the potential for outsized market moves.<\/p>\n<p>If so, they are likely to be outsized gains, certainly across risk assets \u2013 Wall Street rallied strongly on Friday, particularly the Nasdaq and mega tech stocks, and the news from Washington over the weekend will only be seen as positive.<\/p>\n<p>After weeks of tough negotiations Republicans and Democrats reached a tentative agreement to suspend the $31.4 trillion debt ceiling, which now must get through the Republican-controlled House of Representatives and Democratic-led Senate before June 5 to avoid a crippling first-ever default.<\/p>\n<p>Both sides are confident it will pass.<\/p>\n<p>It could be a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-education-nominee-ignored-sexual-assault-allegations-lawsuit-charges\/\" title=\"Biden Education Nominee Ignored Sexual Assault Allegations, Lawsuit Charges\">double-edged sword<\/a> for Asian markets, if not on Monday than in the days and weeks ahead. A <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senate-majority-leader-schumer-announces-agreement-to-extend-debt-ceiling-until-early-dec\/\" title=\"Senate Majority Leader Schumer announces agreement to extend debt ceiling until early Dec.\">debt limit deal<\/a> gives the Federal Reserve more room to tighten policy, which could push up U.S. bond yields and strengthen the dollar \u2013 not usually a good mix for emerging markets.<\/p>\n<p>The dollar is already on a tear, reaching a two-month high on an index basis last week and six-month peaks against the Japanese yen and Chinese yuan above 140 yen and 7.00 yuan, respectively. Japanese and Chinese policymakers are facing different challenges though.<\/p>\n<h3>Japan and China&#8217;s Challenges<\/h3>\n<ul>\n<li>Inflation in Japan is high and sticky, and the Bank of Japan is under pressure to tweak or abandon its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/marketmind-relief-rally-eyed-on-us-debt-ceiling-deal\/\" title=\"US debt ceiling deal may trigger relief rally, says Marketmind.\">ultra loose \u2018yield curve control\u2019 monetary policy<\/a>. Tokyo may quietly prefer the yen to strengthen from here.<\/li>\n<li>Beijing, on the other hand, might like the yuan to fall further. The economy\u2019s post-pandemic lockdown recovery has been weaker than expected, to put it mildly, and inflationary pressures are evaporating. Barclays economists predict 10-20 basis points of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-burns-more-coal-as-drought-cripples-hydropower-system\/\" title=\"China Burns More Coal As Drought Cripples Hydropower System\">policy rate cuts<\/a> and 25-50 bps of reserve requirement ratio cuts over the next six to nine months.<\/li>\n<\/ul>\n<p>Japanese equity markets open on Monday near the 33-year highs reached last week, while Chinese stocks are languishing near six-month lows. So is the Hang Seng tech index, struggling under the cloud of rising U.S.-Sino trade tensions rather than benefiting from the U.S. tech boom.<\/p>\n<p>Perhaps that changes on Monday, if only briefly.<\/p>\n<p>The Asian economic data and events calendar is light on Monday but fills up later in the week, with the focus turning to Japanese unemployment on Tuesday, India\u2019s first quarter GDP and Thailand\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-nation-uk-sees-largest-decline-in-wages-since-2014\/\" title=\"Inflation Nation: UK Sees Largest Decline in Wages Since 2014\">interest rate decision<\/a> on Wednesday, and South Korea\u2019s Q1 GDP on Friday.<\/p>\n<p>Purchasing managers index reports for several countries are scheduled for release too, with China\u2019s May data on Tuesday and Wednesday likely to be the biggest market-movers.<\/p>\n<h3>Key Developments for Monday<\/h3>\n<ul>\n<li>Market reaction to U.S. debt limit deal<\/li>\n<li>Follow-up reaction to Nasdaq rally<\/li>\n<li>Thin trading conditions due to U.S., UK holidays<\/li>\n<\/ul>\n<p>(By Jamie McGeever; Editing by Diane Craft)<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Investors in Asia are expected to feel optimistic and relieved on Monday as lawmakers in Washington reached a tentative agreement on the U.S. debt ceiling, removing the risk. This is likely to give a boost to Asian markets. Jamie McGeever provides a preview of the day ahead in Asian markets.<\/p>\n","protected":false},"author":66,"featured_media":1940252,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[10142,3715,5487,20675,4433,3777,10235],"class_list":["post-1940251","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann","tag-ceiling","tag-deal","tag-debt","tag-marketmind","tag-rally","tag-relief","tag-trigger"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1940251","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1940251"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1940251\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1940252"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1940251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1940251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1940251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}