Salem Radio Network News Thursday, September 28, 2023


Global equities, U.S. yields fall ahead of debt ceiling vote

By Chibuike Oguh

NEW YORK (Reuters) – Global equities and U.S. Treasury yields were lower on Wednesday as bearish sentiment dominated markets, with investors focused on a much-anticipated vote in Congress on raising the U.S. debt ceiling.

The U.S. House of Representatives is set to vote on Wednesday on a bipartisan deal that would lift the $31.4 trillion ceiling and allow the government to avert a default.

The bill faces a potentially tricky path through the House, where Republicans hold a slim majority. It is unclear how many House Democrats will back it.

“The jitters are expected as there is a very small chance there could be an issue with the vote later tonight,” said Ryan Detrick, chief market strategist at Carson Group.

“We don’t anticipate that, but until the final paper is signed on the president’s desk some apprehension isn’t abnormal,” he said, adding that month-end profit taking was also underway.

The MSCI world equity index , which tracks shares in 50 countries, was down 1.05%. European stocks shed 1.15%.

On Wall Street, all three main indexes were lower, led by technology, financials, consumer discretionary and industrials. The Dow Jones Industrial Average fell 0.75% to 32,793.68, the S&P 500 lost 0.81% to 4,171.32 and the Nasdaq Composite dropped 0.77% to 12,916.85.

Benchmark U.S. 10-year Treasury yields moved lower to 3.656%.

The U.S. dollar rose strongly to a more than two-month high after data showed European inflation is cooling quicker than expected and China’s recovery is sputtering.

The dollar index rose 0.404%, with the euro down 0.67% at $1.0661.

Oil prices fell amid demand concerns following weak economic data from top importer China. Brent crude futures for August delivery were down 0.91% to $72.87 per barrel, while U.S. West Texas Intermediate crude (WTI) fell 0.68% to $68.99 per barrel.

Gold firmed despite the dollar’s strength, though optimism about a U.S. debt deal kept bullion on course for its first monthly dip in three.

Spot gold added 0.7% to $1,972.29 an ounce, while U.S. gold futures gained 0.70% to $1,971.80 an ounce.

(Reporting by Chibuike Oguh in New York; editing by John Stonestreet)


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