Today’s Stock Exchanges, May 17th. Optimism on the US debt ceiling. Japan is stronger than expected
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MILAN – The issue of raising the US debt has not yet been resolved and President Joe Biden will skip the trip to Australia to follow it, but from Tuesday’s meeting on the very delicate dossier (Janet Yellen spoke of a possible default in June without intervention) filter optimism. “Positions are still distant but an agreement is possible by the weekend,” House Speaker Kevin McCarthy said at the end of his face-to-face meeting with the president at the White House. The markets seem to believe it and the Western trading day, judging by the futures, is well directed. Unlike disappointing data from China on Tuesday, today from Japan then came support for the markets: the Japanese economy rose beyond estimates thanks to the progressive acceleration of consumption in the services sector in the wake of the reopening of borders after the Covid-19 pandemic and despite the slowdown in exports. In the period between January and March, the GDP recorded an increase of 0.4%, while on an annualized basis the growth is 1.6%.
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Japan grows beyond expectations
Positive futures on Europe and Wall Street
Futures on Wall Street positive, after closing lower yesterday, when the Dow Jones lost 1%, the S&P 0.64% and the Nasdaq 0.18%. At the moment, futures on the Dow Jones mark +0.13%, those on the S&P +0.23% and those on the Nasdaq +0.24%.
Furthermore, a slight rebound is expected at the opening for the European Stock Exchanges, which yesterday closed in the red with Wall Street. Currently, Dax futures are up 0.17%, FTSE 100 futures are up 0.14% and EuroStoxx 50 futures are up 0.26%.
Japan grows beyond expectations
Japan’s economy grew beyond estimates at the beginning of the year, thanks to the progressive acceleration of consumption in the services sector in the wake of the reopening of borders after the Covid-19 pandemic and despite the slowdown in exports. In the period between January and March, the GDP recorded an increase of 0.4%, while on an annualized basis the growth is 1.6%. Between October and December, growth had been flat, while on a year-on-year basis, GDP had expanded by just 0.1%. For the full fiscal year 2022, the world’s third largest economy advanced by 1.2%. This is the second consecutive increase. Consumer spending, which makes up more than half of the country’s gross domestic product, showed an increase of 0.6% compared to +0.3% in the previous quarter, while business investments recorded a progress of 0, 9%, denying the expectations of a slowdown. The contraction in exports, equal to 4.2%, weighed 0.3% on the growth of the economy between January and March. According to analysts, although an improvement in consumption in the services sector is expected, the slowdown in global demand, especially from Europe and the United States, will continue to limit the recovery’s durability. In this sense, the spending potential generated by the gradual recovery of tourists from China and the ongoing negotiations of Japanese companies on wage increases could represent a turning point.
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