Quinta Eco

We&#39;re nearing the end of the debt-ceiling psychodrama in the United States, which gives a welcome boost to global indices. Stock markets closed in the green yesterday, even before hearing the good news that there will be no default by the United States of America since the Senate validated, without a hitch, the debt-ceiling deal that the House of Representatives had approved a little earlier reduces the risk premium and eliminates a source of tension until the end of 2024. The gap between solid but poorly valued and growth companies continued to widen in the United States. The MSCI Value index lost 4% in 2023, while the MSCI Growth is up 27%. The former is home to good old industrial and financial companies such as Exxon, UnitedHealth, Johnson &amp; Johnson, and JPMorgan Chase. The second is home to the Nasdaq&#39;s top performers. The Nasdaq 100 rallied 1.3% yesterday to 14,442 points, compared with a mere 0.5% rise for the Dow Jones. The return of rate hike fears earlier this week quickly dissipated as yesterday&#39;s statistics showed some signs of economic cooling. The fall in the dollar and the US 10-year yield showed that the market had quickly dismissed the hypothesis of a rate hike on June 14. To drive the point home, Patrick Harker, head of the Philadelphia Fed, reiterated what he had implied twenty-four hours earlier: that the central bank could afford to do nothing in June. The main sticking point between hawks and doves remains the labor market, which is still buoyant despite the economic slowdown. And this is confusing today since data showed US payrolls increased by 339,000 in May, compared to estimates of 195,000, while the unemployment rate rose to 3.7%, while 3.4% was expected. The data also showed that average hourly wages also slightly cooled. In any case, futures on Wall Street indices didn&#39;t react much initially after the announcement and remained firmly in the green. Equity markets have no desire to fall, and the Nasdaq looks like it has regained the invincibility lost last year. Today&#39;s economic highlights: The US May employment report is the highlight today. The dollar is stable at EUR 0.9289 and GBP 0.7992. The ounce of gold is worth USD 1975. Oil continues its recovery, with North Sea Brent at USD 76.07 a barrel and US light crude WTI at USD 71.90. The yield on 10-year US debt contracts to 3.61%. Bitcoin is trading at USD 27,000.

Today on Wall Street: Several good news lift Wall Street.

QUINTA ECO

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