Last week's seven corporate defaults--primarily in the U.S and spread by industry--and a sharp rise in risky credits signal continued pressure at the lower end of the rating spectrum. Fed Chairman Powell indicated, on Friday, that a pause in rate hikes may be warranted due to credit stress, so this week's data including revised U.S Q1 GDP, U.S PCE, and global flash PMI’s will be watched closely. Meanwhile, U.S debt ceiling negotiations rumble on (having suffered a setback on Friday, followed by more positive noises over the weekend) and are likely to dictate the market's tone and any volatility in the week ahead.