Relief Rally As Markets Digest Debt Deal Progress, Potential Fed Pause

Cautious optimism characterized the market’s response to the progress in the debt ceiling deal that secured the House vote and reached the Senate. Comments from Fed officials that renewed hopes of a pause by the Fed also contributed to the uptick.

European benchmarks recorded strong gains, buoyed by the easing in inflation. Wall Street Futures are trading in positive territory. Asian stocks finished trading on a mixed note amidst a spurt in the Caixin China General Manufacturing PMI.

Dollar retreated amidst subdued safe haven demand and renewed hopes of a pause by the Fed, putting pressure on the Dollar Index. Bond yields mostly hardened. Crude oil prices gained amidst relief in the progress of the debt deal. Gold declined amidst waning fears of a debt-ceiling linked crisis. Cryptocurrencies extended losses.

Here is a snapshot of the world markets at this hour across stocks, currencies, bonds, commodities and cryptocurrencies.

Stock Indexes:

DJIA (US30) at 32,950.60, up 0.13%
S&P 500 (US500) at 4,189.60, up 0.23%
Germany’s DAX at 15,833.15, up 1.08%
U.K.’s FTSE 100 at 7,481.83, up 0.48%
France’s CAC 40 at 7,152.54, up 0.76%
Euro Stoxx 50 at 4,259.15, up 0.97%
Japan’s Nikkei 225 at 31,148.01, up 0.84%
Australia’s S&P ASX 200 at 7,110.80, up 0.27%
China’s Shanghai Composite at 3,204.63, down 0.01%
Hong Kong’s Hang Seng at 18,216.91, down 0.10%

Currencies:

EUR/USD at 1.0688, down 0.01%
GBP/USD at 1.2427, down 0.11%
USD/JPY at 139.84, up 0.36%
AUD/USD at 0.6505, up 0.03%
USD/CAD at 1.3577, up 0.01%
Dollar Index at 104.26, down 0.06%

Ten-Year Govt Bond Yields:

U.S. at 3.679%, up 1.20%
Germany at 2.2930%, up 1.06%
France at 2.861%, up 0.72%
U.K. at 4.2360%, up 1.29%
Japan at 0.419%, down 0.59%

Commodities:

Brent Oil Futures (Aug) at $72.75, up 0.21%
Crude Oil WTI Futures (Jul) at $68.23, up 0.21%
Gold Futures (Aug) at $1,974.25, down 0.40%

Cryptocurrencies:

Bitcoin at $26,933.40, down 0.64%
Ethereum at $1,862.20, down 0.37%
BNB at $304.72, down 0.73%
XRP at $0.5059, down 0.20%
Cardano (ADA) at $0.3633, down 3.03%

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