Market Commentary
Brian Stutland

 

What You Need to Know on May 26

  • Heading into a 3-day weekend, volatility levels often fall into the off-trading day and come back when the weekend is over.
  • Today in economic news, we have spending data and University of Michigan consumer sentiment.
  • Next week is short but long on economic news with the highlight being the jobs data on June 2nd, where economists are expecting 180K jobs added.

Here are some of the top headlines from today’s news:

  • Debt Deal Emerging to Raise Limit With Two-Year Spending Cap:

The U.S. government is close to a deal that would raise the debt ceiling and fund the government through December. The deal would include a two-year spending cap, which would give lawmakers more time to work on a long-term budget.

  • UBS, Credit Suisse Offer Asia Wealth Bankers Cut on Inflows:

UBS and Credit Suisse are cutting their revenue targets for Asia wealth bankers. The banks are facing increasing competition from local rivals and are struggling to attract new clients.

  • Europe’s Biggest Economic Engine Is Breaking Down:

Germany’s economy is slowing down, and the country is at risk of recession. The slowdown is being caused by a number of factors, including the global trade war and the uncertainty surrounding Brexit.

  • Fed Traders Fully Price In an Interest-Rate Hike Once Again:

Traders are now fully pricing in a 25 basis point interest rate hike by the Federal Reserve at its next meeting in June. The Fed is expected to continue raising rates throughout the year in an effort to combat inflation.