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ShreeMetalPrices: U.S Debt Celling, Global Financial Crisis leads Risk to Global Economy


Investors have been cautious and risk-averse all week, and Friday has been no different. Due to signs of a global economic slowdown, ongoing concerns over the U.S. debt ceiling. And an ongoing worry of a widening banking sector crisis.

Japan’s Nikkei was the exceptions. As it has been throughout the year, climbing 0.8% on the day. While the MSCI Asia ex-Japan index declined by 0.5%. The American dollar was holding onto gains from Thursday and was about to end a two-week losing trend. While short-covering drove oil prices higher, gold held stable.

Investor attention will shift to a plethora of economic reports coming out of Europe, with data on the British gross domestic products likely to have an impact on the future of the pound. The Bank of England increased interest rates and left the door open for additional monetary tightening on Thursday, sending the pound into a tailspin that was still being feel on Friday.

Inflation figures from France & Spain will also be on the agenda, demonstrating the effects of European tightening on local pricing.

Data from the United States suggested. That the labour market may be beginning to show indications of weakness. While inflation moderated slightly. These findings led traders to speculate that the Fed Reserves is likely done tightening.

Concerns about the national debt continue. And Treasury Secretary Janet Yellen is schedule to speak with the board of the Bank Policies Institute lobby organisation the next week to discuss the standoff over increasing the government debt ceiling.

Investor anxiety has increased as a result of the cancellation of a meeting between President Joe Biden & top senators. That was originally set for Friday. If the ceiling is not raise, the federal government might not have enough money to pay its debts as soon as June 1 (in two and a half weeks).

United States regional banking crisis is still going on. And PacWest Bancorp is the latest to draw investor ire after it reported declining deposits and increased collateral postings to the Fed to increase liquidity.