The agreement to suspend the U.S. government’s debt ceiling has sent ripples across the global market. Asian shares and U.S. stock futures saw a positive jolt on Monday in light of the deal struck between U.S. President Joe Biden and House Speaker Kevin McCarthy over the weekend. The crucial agreement ends a lengthy deadlock and averts a potentially damaging economic default.
The suspension of the $31.4 trillion debt ceiling until 2025 has immediately impacted the stock market. It is essential to know that S&P 500 futures experienced a 0.2% boost in Asia, while Nasdaq futures hardened by 0.4%. Concurrently, MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) amplified by 0.3% after falling by 1.1% the previous week. Furthermore, Tokyo’s Nikkei (.N225) escalated to a 33-year high with a 1.3% rise.
Despite this largely positive trend, China’s bluechips (.CSI300) dipped slightly by 0.1%, and Hong Kong’s Hang Seng index (.HSI) declined by 0.3%. The downturn can be attributed to the weakened profit data from China’s industrial firms, indicating a loss of momentum in the world’s second-largest economy.
Also. prices of oil experienced a surge. Brent crude futures rose by 0.7% to reach $77.51 per barrel, while U.S. West Texas Intermediate crude reached $73.4 per barrel, signifying a 1% increase.
Cryptocurrency flourishes as U.S. debt ceiling crisis is averted
The deal’s announcement also sparked a significant upward rally in the crypto market. Among other crypto tokens, Bitcoin surged as the White House communicated the successful deal to prevent a debt ceiling crisis. As President Joe Biden labeled the deal “an important step forward,” Bitcoin registered over 3% growth, reclaiming the $ 28,000 mark.
Ethereum followed suit with a similar 3% leap, reestablishing itself above the $ 1,900 mark. While altcoins also shared in the positive swing, they fell short of matching the performance of the headline tokens. Despite this, the global cryptocurrency market cap rose to the $1.17 trillion mark, reflecting a 3% increase over the last 24 hours.
This robust cryptocurrency response can also be traced to the encouraging personal consumption data from the U.S., which exceeded market expectations, and China’s Web3 revolution.
