American equity futures made modest gains after Friday's strong showing on Wall Street, while European stocks wavered amid cautious optimism the U.S. will avert a catastrophic default after the weekend's tentative deal.
President Joe Biden and House Speaker Kevin McCarthy expressed confidence that their agreement will pass through Congress. But even assuming lawmakers seal the deal before the U.S. government runs out of cash in about a week, traders still have much to contend with — from the prospect of another interest-rate hike from the Federal Reserve to a likely deluge of bond issuance from the U.S. Treasury Department.
Gold was flat on waning demand for havens, while as oil held onto Friday's gains and Bitcoin climbed, reflecting a modestly buoyant tone.The agreement struck by Biden and McCarthy is running against the clock given that June 5 is the date when Treasury Secretary Janet Yellen has said cash will run out. There is plenty in the deal that Democrats and Republicans won't like.