Key Global Events

Monday's meeting of President Biden and McCarthy ended without an agreement leaving markets and investors on their toes. The two leaders find common ground that a default is off the table. The countdown continues to June 1, the day when the Treasury Department may run out of cash to meet its debt obligation, as stated by Janet Yellen. 

Interest rates could continue to rise, said Bullard and Kashkari of the Fed. According to the statements, the central bank may take a break at its next meeting, but leaves the door open for possible future increases.

European stock markets extend losses and slide within minutes of Wall Street opening. Milan's FTSE MIB jumps -0.52% with CNH Industrial NV gaining. Paris' CAC -0.94%, Madrid's IBEX -0.23%, London's FTSE +0.33%. Wall Street futures in the European wake trade below par. Dow Jones -0.18%, S&P500 -0.26% and the Nasdaq -0.40%. Market prepares for a red opening on U.S. stock exchanges.

Forex & Commodities

The dollar's climb against the euro and sterling also continues, reaching 103.627. The EURUSD cross is down 0.45 percent to 1.0764. Cable down 0.44 percent to 1.2482. Oil prices trade sharply higher Tuesday as the U.S. auto season approaches, although uncertainty over a potential U.S. debt default has limited gains. Oil rises to $73 (+1.30%). Gold slips -0.70% to $1962 an ounce.

Index

Asian markets were negative, with a resumption of trade tensions with the U.S. after China banned chip maker Micron Technology from selling some products in the country. In addition, the prospect of a U.S. default has kept Asian markets on high alert, as traders fear the fallout from such an event. Caution prevails in Tokyo, with the Nikkei 225 ending the session down 0.42 %, thus truncating the bullish trail sustained by eight consecutive gains. China's Hang Seng index closes at -1.25 %.

Global Macroeconomic Data 

EUR -  manufacturing PMI falls to 44.6. The figure was expected to rise to 46.2. 
UK - Composite PMI index falls to 53.9. The figure was expected at 54.6
US -Building permits dropped to 1.147 Million. At 4 p.m. New Home Sales index expected to fall to 663 K will be released.