U.S. Equity markets were higher earlier after House Speaker Kevin McCarthy said that he believes a deal on the federal debt limit may be agreed upon soon, even as early as this week. This is the most positive the Republican leader has been since negotiations started, and it gives hope that a potential debt default will be averted. However, this fell apart late Friday as the Republican Party walked away from negotiations. Equity Markets reversed, closing lower, led by the 0.33% fall in the Dow. Sales of previously owned homes in the U.S. fell to a three-month low in April. Low inventory continues to be a huge headwind for this market, with no feasible solution in sight. Despite the median selling price falling at the largest annual rate since 2012, home unaffordability continues to stay near record-high levels. Disney’s (DIS) ESPN, the leading sports-broadcasting network, announced it is preparing to sell its channel directly to consumers in the future via online streaming. The transition would be a major shake-up to its existing revenue model, which relies almost solely on the licensing of its service to bundled cable providers. This decision has been years in the making as traditional TV has lost market share to its streaming rivals. Federal Reserve officials have bombarded investors last week with numerous speaking arrangements. Dallas Fed President Lorie Logan joined several colleagues who have said a rate hike in June would not be off the table if economic conditions do not worsen. The central bank seems to be very much split about a potential rate hike in June and officials have not given investors any clarity last week either. European Markets closed higher. The European Central Bank is considering tighter measures on lenders as banking risk has emerged as a major topic of conversation for the central bank. A potential measure would require stronger liquidity reserves and stricter capital ratios to ensure a banking sector crisis akin to the one in the U.S. does not spread to Europe. In Asia, the economic battlefield between the West and China continues to accelerate. In a meeting with Japanese Prime Minister Fumio Kishida, several of the world’s largest chipmakers (including Taiwan Semiconductor Manufacturing, Samsung, Intel, and Micron) shared plans to massively expand into Japan. The initiative is part of a major push from the U.S. and its allies to move manufacturing of semiconductor chips outside of China as geopolitical tensions worsen in the region. Japan’s inflation re-accelerated in April following an easing from its January highs as consumer prices (excluding food) rose 3.4% from a year ago. If inflation continues to edge higher, the Bank of Japan could be forced into revising its long held easing policy and yield curve controls. Elsewhere, Oil fell 0.43% while Gold reversed some of Thursday’s sell-off, by rising 1% on Friday.

To mark my 2800th issue of TraderNoble Daily Commentary I am offering a special 2-Year Rate of Euro 2750 for my Platinum Service which includes 1 to 4 updated emails throughout the trading day to demonstrate this value, a monthly subscription over the same period would cost 4440 euro in total This offer represents a 38% discount and is open to both new and existing members. If anyone is interested in this offer can you please email me on bryan@tradernoble.com for details

For anyone following my Platinum Service it lost 80 points on Friday and is now ahead by 2030 points for May. April saw a gain of 3354 points while March closed with a gain of 6168 points. The Platinum Service made 3164 points in February, 4687 points in January 2054 points in December, 4789 points in November and a record 9619 points last October.  Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1900 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification 

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