US President Joe Biden expressed confidence in preventing a US default, while Speaker of the House Kevin McCarthy stated that reaching an agreement this week is achievable. JPMorgan Chase & Co. chief Jamie Dimon also confirmed that the US government is unlikely to default on its debt obligations. This information emerged after a meeting of bank executives in Washington, where they discussed issues related to the debt ceiling.
However, Chris Weston, Head of Research at Pepperstone Group Ltd, notes that despite some positive news in the negotiations, risks associated with the US debt ceiling still exist. He warns that an escalation of market stress in early June could also impact European stocks.
Investors are monitoring the situation regarding the US debt ceiling and are awaiting the achievement of an agreement that will prevent default and ensure financial stability.
