Here is what you need to know on Friday, May 28:
The market mood is cheerful amid reports of a large US budget and upbeat US figures. The dollar is edging higher with yields ahead of another round of economic releases, which includes Core PCE, while gold is on the back foot and cryptocurrencies are off the highs. End-of-month flows may cause jitters.
Big budget: US President Joe Biden is set to unveil a $6 trillion budget for fiscal 2022, on top of large infrastructure spending plans. The prospects of robust spending and faster growth have boosted stock markets while expectations of higher debt mean higher bond yields. The dollar is rising across the board.
On infrastructure, Republicans announced a near $1 trillion counter offer which still leaves them far from the White House’s updated $1.7 trillion proposal.
The rush in Washington comes ahead of a long Memorial Day weekend, and the end of the month. Money managers have…