European stocks rise amid optimism about the US debt negotiations

2023-05-26 19:39:40

European stock indices rise at the close of trading today, with renewed optimism about the US debt ceiling negotiations, and the European market recording losses this week.

  • European stocks rose with renewed negotiations on the US debt ceiling

European stock indices rose at the close of trading today, Friday, in light of renewed optimism about the US debt ceiling negotiations, with the European market recording losses this week.

The pan-European Stoxx 600 index closed up 1.2%, after falling to its lowest level since early April, during 3 negative sessions.

On a weekly basis, the benchmark index fell 1.5%, marking its biggest weekly loss in more than two months.

All sectors ended in positive territory, with technology stocks rising 3% and mining stocks rising 2.5%.

Also, Dutch chip machinery maker ASML ended the day up nearly 5%, and the Nasdaq Composite Index rose 1.7%.

Investors are closely watching the US negotiations on the deal, which is progressing, but it is at a “sensitive stage”, according to Republican Representative Patrick McHenry.

And the Republican Speaker of the US House of Representatives, Kevin McCarthy, said yesterday, Thursday, that he had spoken briefly during the past days with former US President Donald Trump about the debt ceiling negotiations, while the time available for reaching an agreement, to avoid the country’s default crisis, is shrinking. On paying off her debts

For her part, the Director-General of the International Monetary Fund, Kristalina Georgieva, said two days ago that the already troubled global economy “doesn’t need the crisis of raising the public debt ceiling of the United States,” expecting that it will be resolved at the last minute, as usual.

The US government debt ceiling is currently more than $31 trillion. This is a record, compared to all the sovereign debts in the world.

US Treasury Secretary Janet Yellen said that June 1 is still an “inevitable deadline” for raising the federal debt ceiling, given the slim odds that the government will collect sufficient revenues to enable it to meet its obligations until June 15, when more is due. from tax revenue.

The global financial markets are witnessing anticipation against the background of the tension between the Democratic administration of US President Joe Biden, and his Republican opponents, over the public debt ceiling.

Also read: What will happen if the United States fails to raise its public debt ceiling?

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