European stocks closed higher amid optimism about the US debt ceiling

Reuters – European stocks rose at the end of trading today, Thursday, supported by hopes for a breakthrough in the crisis of the US public debt ceiling, and the German leading stock index recorded its highest level in more than a year.


The European Stoxx 600 index closed up 0.4 percent, and the auto and technology companies indices led the buying wave.

Germany’s DAX blue-chip rose 1.3%, its best performance since January 2022, while France’s CAC 40 rose 0.6% to its highest in more than two weeks.

A media report said House Speaker Kevin McCarthy was optimistic about the ability of congressional negotiators to reach an agreement to raise or suspend the debt ceiling in time for a vote on the resolution in the House of Representatives next week.


“There is a relief in the financial markets and a sense that a deal will be reached,” said Susanna Streeter of Hargreaves Lansdowne.


“The possibility of a strong shock to the financial system has decreased a lot, which supported stocks today,” she added.

Among the top performers on Thursday was CTS Eventim, which rose 5 percent after the German ticket seller reported higher-than-estimated first-quarter profit.

Volkswagen shares rose 3.2 percent thanks to the company’s plans to renew its core brand to increase efficiency and returns.

Deutsche Bank shares rose 0.7%, recouping early losses after the bank agreed to pay $75 million to settle a lawsuit brought by a woman who alleges abuse by the late businessman Jeffrey Epstein and who accused the German bank of facilitating his sex trafficking.

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