U.S. stock index futures fell Tuesday after a key debt ceiling meeting between President Joe Biden and House Speaker Kevin McCarthy. Futures tied to the Dow Jones Industrial Average fell 85 points, or 0.25%. S&P 500 futures and Nasdaq-100 futures pulled back by 0.3% each. McCarthy and Biden met at the White House Monday evening, in a discussion that the House speaker described as “productive” and “professional.” The latest hourlong talk – occurring just days before the earliest date that the U.S. could default – seemed to echo a more positive tone. “The president and I know the deadline, so I think we’re going to talk every day… until we get this done,” McCarthy said, noting that both teams would “come back together and work through the night” on a compromise. Investors have been closely eyeing debt-limit negotiations in Washington, hoping for more certainty as the so-called X-date of June 1 draws closer. “We are sending a very negative signal about our ability to run our economy, let alone be a anchor for the rest of the world, and the market so far has actually dealt with it very well,” Mohamed El-Erian told CNBC’s “Squawk Box” on Tuesday. Despite this headwind, and uncertainty surrounding the Federal Reserve’s next rate move, the chief economic advisor said he’s “very impressed” by the market’s stability so far. El-Erian also views the S&P 500 as fairly priced. Stocks are coming off a mixed session that saw the Dow lose about 0.4%. The S&P 500 finished little changed, while the Nasdaq Composite advanced 0.5% to touched its highest intraday level and highest close since August. Asia-Pacific markets mostly slid on Tuesday as talks between U.S President Joe Biden and House Speaker Kevin McCarthy ended without a deal. In Japan, the Nikkei 225 closed 0.42% down at 30,957, snapping its seven day winning streak. The Topix ended 0.66% lower at 2,161.49. Both indexes erased earlier gains made in the day. In Australia, the S&P/ASX 200 gained 0.1% to end at 7,270.8 as the country’s composite purchasing managers index saw a softer expansion in May, according to Juno Bank. South Korea’s Kospi climbed 0.41%, finishing at 2,567.55 and the Kosdaq closed Tuesday 0.84% higher at 859.16. Hong Kong’s Hang Seng index reversed earlier gains and to sink 1.27% to 19,428.08, its lowest closing levels since March 21, while mainland Chinese markets also traded lower. The Shanghai Composite closed down 1.52% at 3,246.24 while the Shenzhen Composite ended down 1.03% at 11,012.58. Oil prices were little changed Tuesday as investor concern over the risk of a U.S. debt default dampened risk appetite, although a tighter market due to a seasonal rise in gasoline demand and supply cuts from OPEC+ producers lent support. Brent crude rose 3 cents, or 0.04%, to $76.02 a barrel, while U.S. West Texas Intermediate (WTI) crude also climbed by 3 cents, or 0.04%, to $72.08. Both had risen earlier in the session. Gold prices fell on Tuesday pressured by a stronger dollar, as investors focused on U.S. debt ceiling talks, with this week’s Federal Reserve policy minutes and economic data also on the radar. Spot gold fell 0.6% to $1,958.10 per ounce. U.S. gold futures were down 0.9% at $1,960.30.
Roodeweg 222, Willemstad, Curaçao