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European Markets’ Mixed Reaction Towards US Debt Ceiling Uncertainty

European Stock Markets slid amongst the US debt Ceiling uncertainty.

European Stock Markets slid amongst the US debt Ceiling uncertainty and ahead of the release of the final eurozone inflation figures for April. Europe’s region-wide Stoxx 600 closed 0.12% lower and France’s CAC 40 shed 0.14%. However, the DAX index in Germany traded 0.27% higher at closing time.

After US policymakers US President Joe Biden and four members of Congress on Tuesday were unable to hash out a deal for raising the nation’s debt ceiling, investors have been trading cautiously.

If legislators cannot agree, officials like Treasury Secretary Janet Yellen have warned the US could default on its debt as soon as next month.

Global markets have become somewhat uneasy due to the approaching deadline for raising the US debt ceiling and the possibility of a disastrous US debt default.

The final consumer inflation estimates for the eurozone for April, which are anticipated to demonstrate that prices remained high, will be the session’s primary economic data.

Yet US futures were up, with contracts tracking Wall Street’s benchmark S&P 500 rising 0.2% while those tracking the tech-heavy Nasdaq 100 gained 0.1% ahead of the New York open.

Analysts predict a little increase in the annual rate to 7%, up from 6.9% in March, as traders in Europe wait for the announcement of the eurozone’s final harmonised index of consumer prices for April.

The deposit rate was raised by a quarter of a percentage point to 3.25% this month by the European Central Bank, which said it still had further to go in its rate increases.

Despite the German lender stating that its net profit nearly doubled in the first quarter, Commerzbank stock dropped more than 7% in the corporate sector. It also stated that the future relied on what happened to its Polish mBank unit and that a minor recession was anticipated.

After the Swiss bank warned of a financial cost of roughly $17 billion from the acquisition of Credit Suisse, UBS stock dipped by 0.2%.

After exceeding sales projections during its second quarter, the German engineering and technology giant, Siemens, increased its full-year sales and profit outlook by 2.2%.

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