Morning Bid: Are we there yet? Market holds breath for debt ceiling deal

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A look at the day ahead in European and global markets from Ankur Banerjee

Nervousness in the market over the looming U.S. debt ceiling deadline prevailed through the Asian hours and will remain the main focus for investors as Europe wakes up.

While the talks between U.S. President Joe Biden and top congressional Republican Kevin McCarthy did not end in a deal, theyMcCarthy, the speaker of the House of Representatives, told reporters the two sides remained far apart on an agreement. But he said, "It is possible to get a deal by the end of the week. It's not that difficult to get to an agreement."Close but no cigar. Not yet anyway, but a measure of the cost to insure exposure to U.S.

And so the market is in a holding pattern, with MSCI Asia ex-Japan choppy, dollar hovering around a five-week peak and gold just shy of the key $2,000 per ounce mark. European markets are set for a lower open, with traders waiting for April inflation data for the eurozone. With a whole host of Fed speakers through the week, expect hawkish rhetoric to keep investors jittery and guessing about what the Federal Reserve is likely to do with interest rates.

 

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