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The main stock market indices in the world are operating positive this Friday, June 2, after the Senate gave final approval to the project that lifts the country’s debt ceiling and Joe Biden promised to convert it into law.
The Nasdaq index, which brings together the main technology stocks on the New York Stock Exchange, is set to record its best weekly winning streak since January 2020; The Tokyo Stock Exchange closed this Friday, June 2, with its best rally in three decades and the European indices had their most prosperous day in two months.
The reason why the world markets turned green is the same: the bill approved in the United States Congress that allows the suspension of the debt ceiling in the United States until January 2025, after the presidential elections.
A series of macroeconomic data in the United States has also given signs that central banks are in no hurry to tighten monetary policy with more interest rate hikes, which also helped the stock market euphoria.
A stock market week that pointed to losses closes in green
The US dodging a default on its financial obligations brightened investors for a turbulent week.
Japan’s Nikkei index rose 1.21%, the highest close since July 1990, while the Hong Kong stock market ended what looked like a dismal week with its best day in three months, joining the rally in the rest of the world. .
In Europe, the Frankfurt, London, Paris and Madrid stock markets did the same, with unusual increases of between 1% and 2%, while the New York Stock Exchange, at the opening, showed similar behaviors in its main indicators. .
The US Senate passed bipartisan legislation Thursday June 1 that raised the government’s debt ceiling to $31.4 trillion and averted what could have been a historic default.
Meanwhile, this Friday it was learned that the unemployment rate in the country accelerated to 3.7% in May, from 3.4% in April, a key labor data that was also accompanied by a cooling in the increase of wages.
What’s bad news for many is reprieve for others, as the slowdown in the job market fuels bets that the Federal Reserve will avoid an interest rate hike this month.
With Reuters and EFE
