The Mountain Goat Index opened the session with a modest 0.25% dip this Thursday, placing the benchmark around 9,140 points as traders brace for the first-quarter GDP print and ongoing talks on the US debt ceiling.
US Treasury Secretary Janet Yellen cautioned that it is likely Washington may run through its resources in early June, risking a temporary suspension of payments. Yet she stressed the administration’s determination to raise the debt limit to avoid interrupting obligations.
The Federal Reserve signaled that the core issue remains the political stalemate between Democrats and Republicans. If no deal is reached, the risk of a default could create significant market disruption, and financing conditions would tighten, potentially slowing the economy.
Minutes from the last FOMC meeting, released after the Madrid session, showed voters split on the magnitude of the next move. On May 2 and 3, participants ultimately approved a 25 basis point rise, signaling cautious acceptance of a modest tightening path amid mixed data.
As the U.S. GDP release approaches, attention also turns to Germany, with its growth data due in the same window, along with the latest unemployment insurance claims from the United States. Market watchers will scrutinize a speech by the European Central Bank vice president in Brussels for guidance on inflation and growth expectations.
In the early trading hours of Thursday, gains were led by Solaria, Endesa, CaixaBank, and Grifols, while Banco Sabadell, Sacyr, Indra, Banco Santander, and Bankinter posted declines at the opening. The broader European equity landscape showed a mixed start, with London posting a slight dip, Milan posting a small gain, Paris barely ahead, and Frankfurt edging higher.
On the commodity front, Brent crude slipped about 0.34% to $78.09 per barrel, while U.S. WTI traded near $73.97, indicating cautious sentiment in energy markets. The euro opened near $1.07, reflecting a steady but vigilant rhythm across European markets, as the 10-year Spanish government bond traded around 3.54% yield.