European stocks climb on US debt ceiling optimism

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European stocks climb on US debt ceiling optimism via IrishTimesBiz

“There’s a bit of a relief wave rippling around financial markets that there will be an agreement reached,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

Iseq heavyweight Ryanair traded down 0.9 per cent at €16.19 despite positive sentiment for the industry and upbeat news from rival EasyJet. Home builders Cairns and Glenveagh were both up 0.7 per cent while packaging giant Smurfit Kappa was up 0.65 per cent at €34.21.The main European stocks benchmarks have been largely rangebound this month as investors weighed the risks of further monetary policy tightening by the European Central Bank and of a US recession.

Volkswagen climbed 3.2 per cent on the carmaker’s plans to overhaul its core brand to increase efficiency and returns. “Telecoms appears to be awash with job cuts with Vodafone and BT reducing the size of their workforces,” said Victoria Scholar, head of investment at interactive investor. The benchmark S&P 500 index reversed declines by early afternoon trading on reports that top US congressional Republican Kevin McCarthy said the House could vote on reaching a deal to raise or suspend the debt ceiling as soon as next week.

“They’re seeing that AI is giving people a reason to get excited now, there’s simply money that has been wanting to come back, especially to semiconductors and technology stocks and now they’re getting a green light to do that.”

 

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