Faced with the uncertainty surrounding US debt, European stock exchanges are hesitant. The Eurostoxx 50 opens at 4,320.01 points (-0.40%), the CAC 40 at 7,303.81 points (-0.21%), the DAX 40 at 15,952.73 points (-0.20%), the FTSE 100 at 7,627.20 points (+0.74%) (closing on 26 May), the SMI at 11,434.24 points (+0.96%) (closing on 26 May)), the AEX at 764.10 points (-0.49%), the BEL 20 at 3,641.37 points (-0.30%), the IBEX 35 at 9,180.10 points (-0.12%), the DJIA at 33,093.34 points (+1.00%) (closed on 26 May), the Nasdaq at 12,976.69 points (+2.19%) (closed on 26 May) (closed Close on 26 May), the S&P 500 at 4,205.45 points (+1.30%) (close on 26 May), the Nikkei 225 at 31,350.77 points (+0.38%)

As for exchange rates, the change since the close mentions that in New York, EUR/USD at 1,0709 (+0.01%), EUR/JPY at 150.24 (-0.10%), and USD/JPY at 140.33 (-0.09%).

Faurecia shareholders are meeting at a general meeting this Tuesday. For its part, call center manager Teleperformance announced Monday evening that its CEO Daniel Julien would sell nearly 25,000 shares of the group in several transactions. In a statement, Teleperformance indicates that the objective is to meet the “tax burden immediately payable in the United States, triggered by the final acquisition of the performance shares awarded under the July 29 2020 plan

In addition, automotive supplier Valeo and Chinese VTC specialist DiDi Autonomous Driving announced a strategic cooperation agreement to jointly develop safety systems for level 4 robotaxis.

With many investors back after a long weekend, European equity markets are expected to get off to a mixed start to trading on Tuesday. In particular, the London Stock Exchange and Wall Street were closed on Monday. Investors are watching the progress of the US debt ceiling negotiations. Over the weekend, an agreement was reached between the President of the United States, Joe Biden, and the Speaker of the House of Representatives, Kevin McCarthy. This agreement must pass the vote of both houses of Congress.

According to data from the IG broker, the DAX 40 contract advanced 11.5 points, or 0.07%, and the FTSE 100 contract increased 3.6 points, or 0.05%. Around 7:40am, the CAC 40 futures contract gained 1.2 points

This morning, long-term US Treasury bond yields fell. From a risk management perspective, Mike Boroughs of wealth management firm Fortis Financial Group believes that he would not recommend that clients bet on very short-term Treasury borrowings, despite the agreement reached over the weekend to raise the US debt ceiling. Richard Flax, chief investment officer at Moneyfarm, says he prefers bonds with a duration of less than five years, “given how flat the yield curves are and the uncertainty surrounding the path of central banks in the face of inflation that remains more persistent than we would have

The dollar is up slightly against most other currencies, including the euro. Investors hope that the US Congress will soon adopt the agreement reached on the US debt ceiling. According to UniCredit Research analysts, expectations of further Federal Reserve (Fed) rate hikes should also support the dollar, limiting any downside risk even if uncertainty around when the debt ceiling will actually be raised is damping demand for safe havens

According to UniCredit Research analysts, expectations of a Fed rate hike in July and the decreased probability of rate cuts before early 2024 should prevent the euro from crossing the $1.08 threshold. According to the technical analysis, if the euro falls below the $1.07 threshold permanently, its fall could accelerate to $1.05. The euro fell 0.1% to $1,0693 at 7:35 a.m.

While traders' attention remains focused on the U.S. debt ceiling and the date when Congress may adopt the deal reached this weekend by Joe Biden and Kevin McCarthy, oil futures are falling. The July contract on soft crude (WTI) listed on Nymex sold 40 cents at $72.27 per barrel, while around 7:25am, the North Sea Brent contract of the same maturity lost 56 cents to $76.51