European stocks set to rise as US debt fears subside
(RTTNews) – European stocks are expected to open higher on Thursday as investors applaud signs of progress in resolving the US congressional deadlock over the debt ceiling.
Meanwhile, in the midst of a global energy crisis, Russian President Putin has said Gazprom will send more gas to Europe via Ukraine.
Asian markets advanced on news of a possible temporary extension of the debt limit in the United States to avoid a government default by mid-month.
Democrats are expected to accept the GOP’s latest offer to lift the debt limit for less than two months, but the final details are still being worked out.
Investor sentiment was also bolstered by reports that the United States and China have agreed in principle that their presidents will hold a virtual meeting before the end of the year.
US Secretary of State Antony Blinken said the United States expects China “to act responsibly and deal effectively with any challenges.”
Treasury yields retreated and the dollar index was little changed as investors wait for the weekly jobless claims report later today and the release of the monthly jobs report on Friday for clues to the market. exact timing of the Federal Reserve to begin asset reduction.
In other central bank news, Bloomberg reported that the European Central Bank is considering a new bond buying program to avoid market turbulence after the pandemic emergency program ends.
Destatis is expected to release German industrial production data for August later today. Economists expect output to fall 0.4% month-on-month, reversing a 1% increase in July.
Gold edged down as the dollar held close to a one-year high amid inflation concerns.
Oil extended losses for a second straight session after data showed a larger-than-expected increase in US oil stocks and the US Secretary of Energy indicated the country was ready to release its strategic reserve of oil to calm the prices of oil and engines.
U.S. stocks reversed initial losses to end higher overnight, with ADP employment data beating analysts’ expectations and Senate Minority Leader Mitch McConnell, R-Ken., Proposed authorize a temporary extension of the debt limit.
The Dow Jones plunged more than 450 points before ending the session up 0.3%. The Nasdaq Composite rose half a percent and the S&P 500 added 0.4 percent.
European stocks fell sharply on Wednesday amid concerns about inflation and rising interest rates.
The pan-European Stoxx 600 lost 1%. The German DAX lost 1.5%, the French CAC 40 index lost 1.3% and the British FTSE 100 lost 1.2%.
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