“US Stocks Await Inflation Data Amid Calm Trading, Debt Ceiling Talks, and European Market Rise”

US stock markets witnessed calm trading on Monday, in which investors avoided risk, awaiting the release of the consumer price index report for the month of April on Wednesday, while the most vocal talk was about what could happen if the largest economy in the world defaulted on its debts for the first time. in its history.

Unusually in the first day of the week, the main stock indices ended the day close to the point at which it started, while the stocks of regional and major banks continued their awakening, which began with huge gains on Friday, albeit at much lower rates this time.

BacWest Bankcorp shares rose 3.6% on Monday, after rising more than 80% on Friday, as fears of a new bank about to collapse receded.

Despite the calm, the echoes of the words of Treasury Secretary Janet Yellen, which she launched on Friday, in which she warned of dire consequences for the US and global economy, if the debt ceiling cannot be raised and the country fails to pay its obligations, still dominate the atmosphere.

On Tuesday, President Joe Biden will meet with a group of leaders of both parties, hoping to reach an agreement on the debt ceiling, without him having to make major concessions in government spending, especially with regard to social and health spending on the poor.

And unlike what happened a few years ago during the era of former President Donald Trump, things do not seem easy to reach an agreement this time.

While Republicans see Biden’s excessive spending as an attempt to attract voters using federal funds, Biden refuses to negotiate with “those who are taking hostages,” likening the Republican Party to being “taking the American economy and Americans hostage,” in order to achieve partisan gains.

In Europe, stocks ended the day’s trading on the rise, supported by stocks in the health care and banking sectors, in light of investors’ anticipation of US inflation data, which will be released this week, in search of new light that can be shed on the path of monetary policy of the Federal Reserve (US Central Bank), And then central banks in most parts of the world.

The Stoxx 600 index of European shares rose 0.4%, despite the calm trading on Wall Street, in the wake of the announcement of disappointing earnings reports.

The European index came under pressure last week when the European Central Bank, in contrast to the US Federal Bank, indicated that more rate hikes are still in place because inflation in the Euro-20 countries is still high, after raising interest on the euro by a quarter of a percent, up to to a basic interest of 3.25%.

The banking and health care sectors rose about 0.8% each, leading the gains of sectors in Europe, while the real estate sector shares fell 0.7%.

On the Frankfurt Stock Exchange, the German DAX index fell 0.1%, after data showed that industrial production in the country fell more than expected in March, due in part to the weak performance of the auto sector.

Stock markets crashed in London today following the coronation of King Charles on Saturday.

In a related way, oil prices rose more than 2% on Monday, with the fading of recession fears in the United States, while some dealers saw that the decline in crude oil in the past three weeks, due to demand fears, was exaggerated.

Brent crude rose at the settlement by $1.71, or 2.3%, to $77.01, and US West Texas crude rose $1.82, or 2.6%, to $73.16.