The University of Michigan commented: “Consumer sentiment slid 7% amid worries about the path of the economy, erasing nearly half of the gains achiev
The University of Michigan commented: “Consumer sentiment slid 7% amid worries about the path of the economy, erasing nearly half of the gains achieved after the all-time historic low from last June. This decline mirrors the 2011 debt ceiling crisis, during which sentiment also plunged.”
According to recent reports, Republicans and Democrats want to raise the debt ceiling for two years, which could be bullish for riskier assets and provide more support to consumer sentiment. Treasury yields have started to pull-back after the multi-day rally.
SP500 tested session highs after the release of the better-than-expected Michigan Consumer Sentiment report. Debt ceiling negotiations will remain the key catalyst for SP500 in the upcoming days.
Gold is trying to settle back above the $1950 level as traders focus on the pullback in Treasury yields.
U.S. Dollar Index pulled back from session highs as traders reacted to the Consumer Sentiment data. Traders should note that debt ceiling negotiations will be the main driver for the U.S. Dollar Index dynamics today.
For a look at all of today’s economic events, check out our economic calendar.
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