The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

President Joe Biden declared the US “will not default” on its debt, boosting Wall Street stocks overnight.

The S&P gained more than one per cent. The NASDAQ and New York Stock Exchange increased almost 1.5 per cent. Australian shares are expected to follow this trend.

The United States is facing the prospect of defaulting on trillions of dollars worth of loans. The country is relying on Republicans and Democrats striking a deal to legally allow the US Department of Treasury to incur more debt and pay its bills.

US Treasury officials say if a deal isn’t made, the US could be at risk of running out of money to repay its debts as early as June – potentially triggering a recession.

The issue has seen Mr Biden pull out of Australia’s Quad meeting in Sydney next week. He has stated that defaulting on the debt “is not an option”.

Back home, labour force data is due to be released later this morning. The unemployment rate has been steady at near-50-year lows of 3.5 per cent.

The Aussie dollar has made slight gains. One Aussie dollar is buying 67 US cents and 53 British pence.

To commodities, and gold plunged to a seven-week low at under $1982.83 US dollars per ounce.     

Oil prices reversed losses, up nearly three per cent at $72.72 US dollars per barrel.

More From The Market Online

Provaris Energy’s hydrogen tanker fabrication to recommence; shares up 6%

Provaris (ASX:PV1) has announced fabrication of its prototype hydrogen tanker is to recommence in 2025, pushing…
Image of a woman holding a bottle of hemp oil

Little Green Pharma jumps into distribution with acquisition

Little Green Pharma is aiming to make the strategic acquisition of HH (Australia) Pty Ltd to…
Market Update Graphic

ASX Market Update: Index sheds another 1% as Discretionary stocks lead broad selloff | December 20, 2024

The ASX200 has been down 1% at 8,084 points.
A rubbish truck dumping landfill

‘Meaningful step towards our target’: Cleanaway JV opens door to monetising landfill gas

Cleanaway Waste Management has entered a joint venture with LMS Energy Pty Ltd to enable landfill…