(News Bulletin 247) – The New York Stock Exchange should open lower on Wednesday morning, the question of raising the debt ceiling still continuing to haunt the minds of investors.

Half an hour before the opening, the ‘futures’ contracts on the main New York indices yield between 0.4% and 0.5%, a sign of an opening in negative territory.

In a vote that promises to be decisive, the House of Representatives will today examine the budget agreement reached between Democrats and Republicans in order to avoid a scenario that could plunge the United States into a situation of default. .

But Republican parliamentarians could judge that their leader, Kevin McCarthy, has made too many concessions to Democratic President Joe Biden.

This text should then be examined Friday by the Senate, where the Democrats have the majority.

Some strategists warn that the resolution of the debt ceiling crisis, while positive, could lead to renewed volatility in financial markets.

The relief around the US financial situation could rekindle interest in government bonds and divert liquidity away from equity markets.

On the economic level, the raising of the debt ceiling will also be accompanied by cuts in public spending which could slow down growth by 2024.

The bearish sentiment was further accentuated with the publication of disappointing economic indicators in China.

The official manufacturing PMI purchasing managers’ index came in at 48.8 in May, from 49.2 in April, slipping further into contraction territory.

These figures suggest that the Chinese economy continues to lose momentum after having already posted a disappointing performance in April.

And if a good momentum is maintained in the services sector, its pace of growth continues to slow down after a good first quarter.

Copyright (c) 2023 News Bulletin 247. All rights reserved.