May 8, 2023
United States:
Biden, McCarthy Head Into Showdown as Debt Limit Crisis Nears
Joe Biden and Kevin McCarthy have arrived at a crucial moment in their debt ceiling fight — a meeting that risks cementing their standoff rather than yielding a breakthrough in a crisis already unnerving markets.
The president will host the House Speaker and other congressional leaders at the White House on Tuesday, with McCarthy seeking spending cuts as a condition of suspending or raising the debt limit and Biden pushing to separate the issues and calling for a debt limit increase.
Europe:
Europe’s Gas Buying Slows on Expectations of Further Price Crash
Natural gas purchases needed to refill Europe’s storage sites are slower than usual for this time of year despite a recent price drop with some buyers betting on a further slump.
The continent’s benchmark futures have crashed to just a fraction of the record levels seen last summer, but that’s not been enough to stimulate purchases with consumption slow to recover from crisis lows. Confidence that prices will continue to slide is leaving many buyers waiting to fill inventories ahead of next winter.
Asia:
Chinese Bank Stocks Soar, Adding $166 Billion in Trading Frenzy
Chinese banking stocks are surfing a tide of optimism not seen since the nation’s 2015 equity bubble, as traders look to state lenders to galvanize a long-awaited market rally.
The CSI 300 Financials Index jumped for a fifth session on Monday to reach its highest level since April 2022, adding $166 billion in market value in the process. The gains were led by state-owned lenders including China Citic Bank Corp. as well as Bank of China Ltd., which hit the 10% daily limit-up for the first time since July 2015.
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