Stocks in Asia traded higher Tuesday, and most markets (except China's CSI 300) are now up for the week as investors in Asia can digest an apparent US debt limit deal, removing a massive global tail risk for now.

If one thing still unites both Republicans and Democrats and even hardliners, it is a desire to avoid giving rivals like China a leg-up advantage.

European equities are little changed this morning and flat for the week -- illustrating how a US debt limit deal appears to have been largely anticipated by most risk assets.

Across asset classes, 10-year US Treasury yields are reacting more definitively to the debt limit news -- down 8bp to 3.73% -- with the move lower, reflecting, perhaps, the negative growth impulse that may accompany the spending cut that the debt limit resolution entails. Hence Fed sentiment is centring around the June pause rather than a rate hike camp today. 

We don't necessarily agree with the move, as a debt deal should allow the market to continue pricing a firmer path for Fed policy and the Dollar for the weeks ahead. Let's see if New York supports this view.

SPI Asset Management provides forex, commodities, and global indices analysis, in a timely and accurate fashion on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.

Our publications are for general information purposes only. It is not investment advice or a solicitation to buy or sell securities.

Opinions are the authors — not necessarily SPI Asset Management its officers or directors. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD bounces off lows, retests 1.1370

EUR/USD bounces off lows, retests 1.1370

Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.

EUR/USD News
GBP/USD trades slightly on the defensive in the low-1.3300s

GBP/USD trades slightly on the defensive in the low-1.3300s

GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.

GBP/USD News
Gold remains offered below $3,300

Gold remains offered below $3,300

Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.

Gold News
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises

Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises

Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.

Read more
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets

Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets

Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Majors

Cryptocurrencies

Signatures

Best Brokers of 2025