closed 0.1% lower, after logging its strongest one-day gain in nearly two months on Friday.U.S. President Joe Biden on Sundaya budget agreement with House Speaker Kevin McCarthy to suspend the $31.4 trillion debt ceiling until Jan. 1, 2025, and said the deal was ready to move to Congress for a vote.
"There's some optimism of reaching agreement on the debt ceiling," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. "But focus has returned to what's going to happen given inflation is still stubborn, worries about a hard landing in the U.S., and the impact of the European Central Bank's expected rate hikes on euro zone economies."
Analysts also pointed out that the deal still has to pass votes in the House perhaps on Wednesday, and then the Senate. However, a clearer reaction will kick in when U.S. and UK markets reopen. After rallying to multi-year highs on the back of an upbeat earnings season earlier in May, concerns about debt ceiling standoff and signs of global economic slowdown have pressured European stocks of late. The benchmark STOXX 600 is on track to log its steepest monthly drop this year.advanced 2.6% from record lows as the struggling Swedish real estate group is broadening a strategic review to include a potential sale of the whole company or some of its business segments.