U.S. stocks climb on debt deal, softer inflation data - BNN Bloomberg

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European stocks climbed after three days of declines, while U.S. futures edged higher after the House passed a deal to avert a U.S. default and Federal Reserve officials hinted at a pause in interest-rate hikes.

Banks and carmakers led gains in the Stoxx Europe 600 index as data showed euro-area inflation slowed more than analysts' estimates in May. Adnoc Logistics & Services, the maritime logistics unit of Abu Dhabi's main energy company, soared as much as 52 per cent on its debut after a hugely oversubscribed initial public offering.

“Finally, some good news is driving today's optimism,” said Ludovica Scotto di Perta, a structured-product specialist at Swissquote Bank SA. “U.S. raising the debt ceiling and sentiment that the Fed will pause are boosting risk appetite. It might only be temporary but we will take anything at this point.”

“A June swoon may be in the cards as the S&P 500 struggles to clear key resistance at 4,200,” said Adam Turnquist, chief technical strategist at LPL Financial. “While a deal in Washington could be a catalyst for a breakout, overbought conditions in the technology sector and mega-cap space — the primary drivers of this year's market advance — could make this a high hurdle for the market to clear on a near-term basis, especially without broader participation.

But Fed Governor Philip Jefferson said the central bank is inclined to keep interest rates steady in June to assess the economic outlook. His remarks were echoed by Philadelphia Fed President Patrick Harker, who said, “I think we can take a bit of a skip for a meeting.”

 

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