European stocks may open on a positive note Tuesday after U.S. House of Representatives Speaker Kevin McCarthy said debt talks with President Joe Biden were “productive” but no agreement was reached.
The White House and Congress have until June 1 to raise the debt ceiling before a default.
Asian stocks traded mixed, with Chinese and Hong Kong markets retreating amid a resurgence in Sino-U.S. trade tensions and doubts about China’s economic recovery.
The U.S. said it has “very serious concerns” about China’s move to restrict sales of Micron Technology products in the country.
The dollar hit a six-month high against the yen and gold edged lower while oil prices rose for a second consecutive session on forecasts for oil demand to rise in the second half of the year.
In economic releases, flash purchasing managers’ survey results from the euro area and the U.K. are due later in the session, headlining a busy day for the European economic news.
U.S. stocks closed mixed overnight as investors awaited new updates on debt ceiling negotiations and Treasury Secretary Yellen said that the likelihood of the Treasury paying all U.S. bills by June 15th is quite low.
Hawkish comments from Fed officials also weighed, with Federal Reserve Bank of St. Louis President James Bullard backing two more interest-rate increases in 2023 and his Minneapolis colleague Neel Kashkari cautioning against reading too much into a June pause.
The Dow shed 0.4 percent, while the S&P 500 finished marginally higher and the tech-heavy Nasdaq Composite added half a percent.
European stocks also ended mixed on Monday, with traders focusing on U.S. debt ceiling talks and the results of Greece’s general elections.
The pan European STOXX 600 ended flat with a positive bias. The German DAX dropped 0.3 percent and France’s CAC 40 slipped 0.2 percent while the U.K.’s FTSE 100 inched up 0.2 percent.
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