What's going on?

Data out on Wednesday showed that Europeans are spending as much as they did before the pandemic � and in all their old favorite haunts too.

What does this mean?

Europe�s been enjoying a return to almost-normal: schools and offices have reopened after a year and a half, and nearly two-thirds of the region�s residents are now fully vaccinated. So it stands to reason that they�re flocking to shops and restaurants in their droves, with the use of public transport at its busiest since the start of you-know-what. Even movie theaters are making as much money as they did in the beforetimes � all the more remarkable considering the lockdown-driven shift toward streaming services. The million euro question, then, is how long Europe can keep this up: tourism still hasn�t fully recovered and supply shortages aren�t going anywhere, so the region�s not exactly out of the woods yet�

Why should I care?

The bigger picture: The US wants more debt.
The US isn�t in such a secure spot. See, the country has a habit of spending more money than it makes from taxes, and it issues bonds to make up some of the shortfall. But the government�s now reached the limit on what it can borrow, and it�s looking for the votes to raise that so-called �debt ceiling�. If it can�t find them by the end of the week, the government could run out of money as soon as mid-October, putting a stop to everything from welfare payments to infrastructure investments.

For markets: A bad month to be a bond.
A strapped-for-cash US won�t be able to pay interest on its bonds either, which would send prices plummeting. That�d only add to the market�s problems: the world�s central banks have already said they�re thinking about raising interest rates, which would make existing bonds less attractive and bring down their prices. That threat alone has sparked a selloff, which might explain why the bond market�s on track for its worst month since March.