(New York) The New York Stock Exchange was trading slightly lower as investors await new US inflation data this week as the debt ceiling tussle continues.
The Dow Jones index fell 0.27%, the tech-heavy NASDAQ fell 0.38% and the S
The London square was closed on Monday for celebrations related to the coronation of Charles III while the Paris square was slowed down due to a public holiday.
After a volatile week, one of the worst since March for the S
PacWest gained almost 25% to 7.17 dollars, after deciding to sharply reduce the distribution of a dividend to only one cent which reassured investors. The other establishments followed suit, such as Western Alliance (6.96%) or Zions Bancorporation (6.44%).
The big banks were stable like JPMorgan and Goldman Sachs (0.15% around 10 a.m. Eastern time) or Citigroup (0.71%) and Bank of America (0.65%).
Investors will watch Monday in the second part of the session for the publication of the last quarterly survey of the Federal Reserve (Fed) on credit conditions, carried out among banks (SLOOS survey).
This “significant” survey of lenders from 80 major US banks and several foreign banks in the US should shed light on market participants “about banks’ lending activity and how it will affect growth”, noted Patrick O’Hare of Briefing.com.
On the macroeconomic front, the consumer price index (CPI) is expected on Wednesday and is likely to have accelerated in April to 0.4% against 0.1% in March, in particular due to a rebound in energy prices.
Without counting these and those of food, so-called core inflation should still hold at 0.3% against 0.4% the month before, according to analysts’ forecasts. On Thursday and Friday, the government will also publish producer and import prices.
Finally, the tussle over the debt ceiling between the Democratic administration and Republicans in Congress will gain in intensity this week.
Over the weekend, Treasury Secretary Janet Yellen hammered home the need to avoid a possible US default in June.
A default by the United States on its debt would lead to “financial and economic chaos”, Ms. Yellen warned on Sunday, as the Republican opposition still refuses to raise the debt ceiling unconditionally.
For the US Minister of Finance, it would be “an economic and financial disaster”.
“ President Biden invited congressional leaders to a meeting on the subject on Tuesday, in an effort to find common ground ”, recalled art Hogan of B. Riley Wealth management.
The government of Joe Biden has warned that without an agreement the United States may no longer be able to meet their commitments from the beginning of June, which would put them in a situation of default, a first in the history of the country.
Among the quarterly results, Disney (2.62%) will announce its results on Wednesday and analysts expect a significant increase in the number of its subscribers to the Disney streaming service.
US medical equipment maker Baxter International (1.35%) was hailed after announcing the sale of its biopharma subsidiary for $4.25 billion to investors Advent International and Warburg Pincus.
The title of the cosmetics group Estée Lauder, badly shaken last week after a drop in its annual forecast, gained 1.46% around 10:15 am (Eastern time).
Press reports evoke the project of the billionaire and shareholder activist Nelson Peltz to ask for changes in the direction of the group.
In the bond market, rates on 10-year bills edged up to 3.49% from 3.43% on Friday.