Stocks, U.S. bonds steady as debt talks continue - BNN Bloomberg

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Equity markets were steady and Treasury yields held near two-month high as investors waited for further news on whether U.S. lawmakers will manage to reach a debt agreement.

Yields on two-year Treasury notes were at 4.49 per cent and S&P 500 futures traded little changed. European shares flatlined after early gains from mining stocks fizzled out.

Marvell Technology Inc. soared 17 per cent in U.S. premarket trading after the chipmaker projected a big increase in revenue from artificial intelligence technologies. Other tech names such as Salesforce Inc., Advanced Micro Devices Inc. and Intel Corp. rose more than one per cent. “The market remains very much focused on the U.S. debt ceiling talks, even though we have been in this situation a number of times in the recent past,” said Stuart Cole, head macro economist at brokerage at Equiti Capital UK Ltd. “The recovery seen yesterday following the better sales forecast from Nvidia suggests that as soon as an opportunity arises, the worries over the debt talks are quickly forgotten.

Republican and White House negotiators are moving closer to an agreement to raise the debt limit and cap federal spending for two years, according to people familiar with the matter. The two sides have narrowed differences in talks over recent days, according to the people, though the details agreed to are tentative and a final accord is still not in hand.

The tech rally also rippled across Asia, lifting companies such as Japan's Screen Holdings Co., South Korea's SK Hynix Inc. and Taiwan Semiconductor Manufacturing Co. In Britain, the pound strengthened after a strong reading of U.K. retail sales bolstered expectations that interest rates will continue to rise. U.S.

 

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