Market Update: Talks on US Debt Limit, NY Empire Falls, Turkish Presidential Election, and More

• Talks between US President Biden and a representative of the House of Representatives, McCarthy, on the debt limit are scheduled for tomorrow. However, the market is not worried about the risks related to a possible US bankruptcy, despite a massive rise in CDS valuations.
• NY Empire falls to -31.8, a return to March’s very low readings, after a positive surprise in April. April was exceptional due to a significant rise in stocks, also business sentiment in New York is back in the weak zone;
• Türkiye’s presidential election remains inconclusive. As a result, a runoff between Erdogan (around 49% of the vote) and opposition candidate Kilicdaroglu (around 45% of the vote) will be needed, and will likely take place in two weeks on Sunday, May 28. In parliament, the AKP and its coalition partners won more than 49% of the vote, which is likely to keep them in power. The lira lost today approaching the 20 level.
• The dollar lost most of its ground today, although the EURUSD pair held below 1.0900 after a sharp selloff at the end of the week. The AUDUSD recouped losses from Friday’s session on the back of good sentiment in Chinese indices.
• Chinese indices rose sharply today, albeit for no specific reasons. The PBOC keeps interest rates unchanged, even though it is increasing liquidity in the market all the time. Container data shows weak recovery in China
• WTI Crude Oil returns above $70 per barrel, and Gold attacks $2020 per ounce, even despite higher yields. Natgas scores bounce continuation and tests $2.35/MMBTU amid declining rig count
• After an initial selloff, the US500 gains 0.15% before 8pm and the US100 rises 0.3%. Bulls are ignoring weak data from the New York Fed and aggressive comments from Atlanta Fed President Bostic. Bostic noted that interest rates can remain unchanged through the end of the year, even if the recession begins;
• The company C3ai (AI.US) rises almost 20% today after the publication of preliminary financial results. Markets saw them as a sign that the push around artificial intelligence could improve the company’s situation in the long run. Preliminary revenue beat Wall Street expectations and is expected to hit $72.1 million to $72.4 million versus estimates of $71.1 million. HEICO Corp shares at all-time high after $2.05 billion worth of Wencor acquisition deal.
• Bitcoin bounces towards $27,500, a Bloomberg investor survey indicated that the largest cryptocurrency could turn out to be one of the “beneficiaries” of a potential US default.

The Turkish lira is slightly weaker after the first round results. USDTRY bulls remain in favor, supported by the trend line. Source: xStation5

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